Let the demand function for a product be given by the fuction D()1.6230, where q

Question

Let the demand function for a product be given by the fuction D()1.6230, where q is the quantity of items in demand and D(g) is the price per item, in dollars, that can be charged when q units are sold. Suppose fixed costs of production for this item are $3, 000 and variable costs are $4 per item produced. If 51 items are produced and sold, find the following: A) The total revenue from selling 51 items (to the nearest penny). Answer:S B) The total costs to produce 51 items (to the nearestpen Answer: S C) The total profits to produce 51 items (to the nearest penny. Profits may or may not be negative.) Answer: S

Explanation / Answer

a)P=1.6q+230

and revenue is P*Q= (-1.6q+230)*q and here q is 51

total revenue=7568.4

b)Total cost=fixed +variable

=3000+(4*51)=3204

c)Total profit=revenue-costs

=7568.4-3204=4364.40

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