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A company manufacturers pet rock, which they sell for $17.98 each. Their fixed costs are $98,000 per year and each rock $12.30 to make.Find their cost, revenue, and profit functions in terms of x

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sqdancefan

Answer:

  • C(x) = 98000+12.30x
  • R(x) = 17.98x
  • P(x) = 5.68x -98000

Step-by-step explanation:

The cost function is the sum of fixed costs and the cost of making x number of pet rocks:

  C(x) = 98000 +12.30x

The revenue is generated by the sale of the rocks. It is the product of selling price and the number sold.

  R(x) = 17.98x

Profit is the difference between revenue and cost.

  P(x) = R(x) -C(x) = 17.98x -(98000 +12.30x)

  P(x) = 5.68x -98000

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