Writing Profit Equation where we have cost only: TC= C=0.26x^2+40.85x+983.31

zebma

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Hi,

Following is my problem:

A company's manufacturing units is a maximum of 208 units per week
C=0.26x^2+40.85x+983.31 (x is the number of units / manufactured per week)
Unit Selling Price is: $104 thousand

Here we need to find an expression for Company’s profit from selling units, in thousands, as a function of the number of units manufactured per week.

I know that the profit can be defined as the difference between revenue and manufacturing cost and the revenue from the sales can be found by multiplying demand (A-B*p) by selling price (p). In the question I am unable to find the demand and revenue to go further.

Please help.
 
Last edited:
Hi,

Following is my problem:

A company's manufacturing units is a maximum of 208 units per week

TC= C=0.26x^2+40.85x+983.31 (x is the number of units / manufactured per week)

Unit Selling Price is: $104 thousand

Here we need to find an expression for Company’s profit from selling units, in thousands, as a function of the number of units manufactured per week.

I know that the profit can be defined as the difference between revenue and manufacturing cost and the revenue from the sales can be found by multiplying demand (A-B*p) by selling price (p). In the question I am unable to find the demand and revenue to go further.

Please help.

What is TC?

What is C?
 
A company's manufacturing units is a maximum of 208 units per week
TC= C=0.26x^2+40.85x+983.31 (x is the number of units / manufactured per week)
Unit Selling Price is: $104 thousand

Here we need to find an expression for Company’s profit from selling units, in thousands, as a function of the number of units manufactured per week.
Everything is stated in terms of "units...per week", so why are we then changing to "units, in thousands...per week"? Is there more to this exercise than has currently been posted?

I know that the profit can be defined as the difference between revenue and manufacturing cost, and the revenue from the sales can be found by multiplying demand (A-B*p) by selling price (p)....
What are "A" and "B"?

Thank you! ;)
 
What is TC?

What is C?
"It is typo mate. TC = Total Cost, C= Cost. Both the same. Sorry for the mistake"

Everything is stated in terms of "units...per week", so why are we then changing to "units, in thousands...per week"? Is there more to this exercise than has currently been posted?

What are "A" and "B"?

"the 'in thousands' refers to the price. A & B are numbers, where A is the demand at ZERO price and B is the actual demand on set price"
 
Last edited by a moderator:
Same problem here - how to formulate Price function P(x) in a form of quadratic equation with below data given:
- total cost C(x)=0.26x^2+40.85x+983.31 (x is the number of units / manufactured per week)
- unit selling price = 104
- maximum weekly production = 208
- maximum weekly production at given unit price = demand

Any ideas anyone?
 
Same problem here - how to formulate Price function P(x) in a form of quadratic equation with below data given:
- total cost C(x)=0.26x^2+40.85x+983.31 (x is the number of units / manufactured per week)
- unit selling price = 104
- maximum weekly production = 208
- maximum weekly production at given unit price = demand

Any ideas anyone?
Didn't they give you the unit price, as a constant? So the unit price "function" would be a constant function? ;)
 
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