A considering a new product. The accounting department estimates that the total

Question

A considering a new product. The accounting department estimates that the total cost C(x) of producing x units will be C(x) = 55x + 9,430. The sales department that he R(x) - 65 x, but that no more than 816 units can be sold at that price. Find and (R - C) A -$1270 loss, cost exceeds income it's not worth to develop product B. $1,759 profit, income exceeds cost it is worth it to develop product C. $1,270 profit income exceeds cost it is worth develop product D. $107, 360 profit income exceeds cost it is it. 10 develop product

Explanation / Answer

R(x) = 65x

C(x) = 55x + 9430

To find (R-C)(898)

(R-C)(x) = 65x - ( 55x + 9430)

(R-C)(816) = 65*816 - ( 55*816 + 9430)

= -1270 $

Option A is the correct answer.

-$1270 loss, cost exceeds income , it's not worth it to develop product.

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