Penny is making pipecleaner flowers to sell on Etsy for 1 ea

Penny is making pipecleaner flowers to sell on Etsy for $1 each. Penny and her friends become more efficient as they gain practice in flower production. The first 100 flowers cost $1.35 each. The next 100 cost $1.20 each. The next 100 cost $1.10 each. The next 100 cost $0.70 each. All the rest cost $0.40 each. What is the marginal cost of the 340th flower? What is the marginal profit of the 340th flower? If Penny sells 1000 flowers, how much profit does she earn in total?

Solution

Marginal cost of 340th flower is $0.70 and its profit=$(1-0.70)=$0.30

If Penny sells 1000 flowers then he earns a profit:

=$(100x-0.35+100x-.20+100x-0.10+100x0.30+600x0.60)

=$3250