Problema Solution
A firm is considering a new product.The accouting department estimates that the total,C(x), of producing x units will be C(x)=70x+6410.The sales department estimates that the revenue, R(x)=80x, but that no more than 898 units can be sold. (a) find (R-C)(898). (b) What does (R-C)(898) tells this firm ?
Answer provided by our tutors
the total cost of producing c units is:
C(x)=70x+6410
the revenue for x products is:
R(x)=80x
(a) find (R-C)(898)
(R-C)(898) = R(898) - C(898) = 80*898 - 70*898 + 6410 = $1,539
(b) What does (R-C)(898) tells this firm
that the profit is $1,539.