Jason Superville
New member
- Joined
- Jun 27, 2016
- Messages
- 2
It cost $400 to manufacture a table. In addition, the overhead fixed cost associated with production stands at $4000. The company manufactures 1 to a 100 tables daily. Records show the company demand is 10 tables the price is $1200, but when the demand is 30 tables the price is $200. Find the revenue, cost, price and profit function?
This is what I have done so far. gradient is 1200-200/30-10 = 50 "gradient is 50".
price p(x)=400-50x
revenue R(x)=x(400-50x)=400x-50x^2
I know how to get the profit function P(x)= R(x)-C(x) but I'm confused where the cost function is concern.
Do I use the gradient in variable cost C(x)=1200+50x or 4000=1200+m(10) and find for m.......
Please help guide me with the cost function and let me know if I'm correct with my price and revenue function, really want to understand how to interpret this question. Thank You in Advance.
This is what I have done so far. gradient is 1200-200/30-10 = 50 "gradient is 50".
price p(x)=400-50x
revenue R(x)=x(400-50x)=400x-50x^2
I know how to get the profit function P(x)= R(x)-C(x) but I'm confused where the cost function is concern.
Do I use the gradient in variable cost C(x)=1200+50x or 4000=1200+m(10) and find for m.......
Please help guide me with the cost function and let me know if I'm correct with my price and revenue function, really want to understand how to interpret this question. Thank You in Advance.