Please someone help me with this question I really need corr
Please someone help me with this question. I really need correct answers that show steps how you do it. Thanks. I just have no idea what should do. Thanks in advance.
Solution
total cost price = 28600 + x( 2/5 x + 444 ) , where x is the no.of units
total selling price = x ( 1570 - 3/5 x)
For break even point, equate both the above equations and solve the quadratic equation obtained for x,
the solution comes out to be x = 1100, 26 !!!
(a) x = 1100, 26
(b) maximum revenue is when x = 1100 , so maximum revenue is 1001000.
(c) Taking 28600 because its fixed cost, the profit function will be
x(1570 - 3/5 x) - [x(2/5x + 444)]
i.e. x(1126-x) = profit function .
Now, find out profit for both x=1100 and x=26 which are the same, so the profit is 28600.
(d) the selling price and the cost price are purely dependent on the the no. of units manufactured, so a variation of x will change the profit and no other price will effect the profit of the company.

