Problema Solution
Revenue and Cost (Refer to Example 12.) The
cost to produce one compact disc is $1.50 plus a
one-time fixed cost of $2000. The revenue received
from selling one compact disc is $12.
(a) Write a formula that gives the cost C of producing
x compact discs. Be sure to include the fixed
cost.
(b) Write a formula that gives the revenue R from
selling x compact discs.
(c) Profit equals revenue minus cost. Write a formula
that calculates the profit P from selling x
compact discs.
(d) What numbers of compact discs need to be sold
to yield a positive profit?
Answer provided by our tutors
a) C=2000+1.5*n, where n is the number of disks
b)R=12*n
c)P=R-C=12n-(2000+1.5n)=10.5n-2000
d)P>0 means
10.5n-2000>0
10.5n>2000
n>2000/1.5≈1333.33
So he needs to sell at least 1334 CD-s to get profit