Test: Final Exam Submit Test This Question: 1 pt 20115 (0 complete) | This Test:

Question

Test: Final Exam Submit Test This Question: 1 pt 20115 (0 complete) | This Test: 15 pts possible A fim produces a product that has the production cost function Cx)- 340x+ 10,370 and the revenue function Rx)-425x. No more than 163 units can be sold. Find and analyze the break-even quantity, then find the profit function. The break-even quantity is units. Type a whole number.) If the company can produce and sell no more than 163 units, should it do so? O A. Yes. Since 163 is equal to the break-even quantity, production of the product can produce a profit O B-Yes. Since 163 is greater than the breakeven quantity production of the product can produce a profit O C. No. Since 163 is greater than the break-even quantity, production of the product cannot produce a profit O D. No. Since 163 is less than the break-even quantity, Write the profit function. production of the product cannot produce a profit Click to select your answer(s) .

Explanation / Answer

C(x) = 340 x + 10370

R(x) = 425 x

breakeven occurs when R(x) = C(x)

setting both equations equal

340 x + 10370 = 425 x

x = 122

breakeven quantity is 122 units

b) since 163 is greater than breakeven quantity , production of the product can produce a profit

option b is correct

c) P(x) = R(x) - C(x)

=  425 x -  (340 x + 10370 )

P(x) = 85x - 10370

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