6 6 points My Notes Ask Your Teacher A company has a fixed c

6. -6 points My Notes Ask Your Teacher A company has a fixed cost of 30,000 and a production cost of $8 for each disposable camera it manufactures. A unit sells for $12. (a) What is the cost function? C(x)- (b) What is the revenue function? R(x)- (c) What is the profit function? P(x) (d) Compute the profit (loss) corresponding to the production levels of 5100, 7600, and 11,200 units, respectively. P(5100) P(7600) P(11,200)- Need Help? Read It Show My Work (optional) Submit Answer Save Progress Practice Another Version

Solution

Fixed Cost: $ 30000 Vvariable cost: $ 8 per unit Selling price : $ 12 per unit Let X be the number of units Cost Function: $ 30000+ 8X C(X) = 30000+ 8X Revenue Function: 12X R(X) = 12X Profit Function= Revenu-Cost P (X) = 12X - 30000 -8X P(X) = 4 X -30000 Req d: P (5100)= 4*5100 - 30000 = ($ 9600) P (7600) = 4*7600 - 30000= $ 400 P (11200) = 4*11200 - 30000 = 14800