2. 1.05/5 points |Previous Answers WaneFMAC7 1.2.019 My Notes Ask Your Teacher Y
ID: 2885751 • Letter: 2
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2. 1.05/5 points |Previous Answers WaneFMAC7 1.2.019 My Notes Ask Your Teacher Your college newspaper, The Collegiate Investigator, has fixed production costs of $70 per edition and marginal printing and distribution costs of 39c per copy. The Colegiate Investigator sells for 49c per copy. (a) Write down the associated cost function C(x) in dollars. HINT [See Examples 1 and 2. C(x) 70 +0.39x Write down the revenue function R(x) in dollars. R(x) = Write down the profit function P(x) in dollars. (b) What profit (or loss) results from the sale of 500 copies of The Collegiate Investigator? $ 20 (c) How many copies should be sold in order to break even? copies Need Help? Read It Submit Answer Save Progress Practice Another VersionExplanation / Answer
Revenue function R(x) = Selling price * x = 0.49x
Profit Function P(x) = R(x) - C(x) => 0.49x - (70 + 0.39x) => 0.1x - 70
at x = 500
P(500) => 0.1*500 - 70 => $ (-20) (Loss of 20 Dollar)
For break even P(x) = 0
0.1x - 70 = 0
x = 700 copies to be sold for break even.
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