Math Problem Statement
A TV manufacturer has the total cost function C(x)=72x+3600 (in dollars). The manufacturer sells the TVs to consumers for $372 each. Let x represent the number of TVs manufactured and sold.
What is the manufacturer's revenue function, R(x)? R(x)=
What is the manufacturer's simplified profit function, P(x)? P(x)=
What is the revenue from selling 336 items? $
What is the cost of producing 336 items? $
What is the profit on 336 items? $
Solution
Let's work through each part of the problem step by step.
1. Revenue Function:
The revenue function represents the total money earned from selling items. Since each TV is sold for $372, the revenue function is:
2. Profit Function:
The profit function is given by the difference between revenue and cost, i.e.,
Substitute and into the equation:
Simplify the equation:
3. Revenue from Selling 336 Items:
To find the revenue from selling 336 items, substitute into the revenue function:
Calculating:
So, the revenue from selling 336 items is $125,092.
4. Cost of Producing 336 Items:
To find the cost of producing 336 items, substitute into the cost function:
Calculating:
So, the cost of producing 336 items is $27,792.
5. Profit on 336 Items:
To find the profit from selling 336 items, substitute into the profit function:
Calculating:
So, the profit from selling 336 items is $97,200.
Summary of Results:
- Revenue function:
- Profit function:
- Revenue from selling 336 items: $125,092
- Cost of producing 336 items: $27,792
- Profit on 336 items: $97,200
Would you like more details or have any questions?
Here are five related questions:
- What would the profit be if the manufacturer produced 500 items?
- How would the profit change if the price per TV were increased to $400?
- What is the break-even point (number of items sold where profit is zero)?
- How does a change in fixed costs affect the profit function?
- What is the marginal revenue for each additional TV sold?
Tip: When calculating profit, always consider both fixed and variable costs. This helps in understanding how scaling production affects profitability.
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Math Problem Analysis
Mathematical Concepts
Linear Functions
Revenue Calculation
Profit Calculation
Algebra
Formulas
Revenue function: R(x) = 372x
Cost function: C(x) = 72x + 3600
Profit function: P(x) = R(x) - C(x) = 300x - 3600
Theorems
-
Suitable Grade Level
Grades 9-11
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