A company makes and sells toasters. To make the toasters there is a fixed monthly cost of $27,000 and an additional production cost of $30 per toaster. The toasters sell for $75 each. (a) Write down the cost function. (b) Write down the revenue function. (c) Find the profit function. (d) Find the break even point. (e) How many toasters must the company sell to make a 15% profit?

A company makes and sells toasters. To make the toasters there is a fixed monthly cost of $27,000 and an additional production cost of $30 per toaster. The toasters sell for $75 each. (a) Write down the cost function. (b) Write down the revenue function. (c) Find the profit function. (d) Find the break even point. (e) How many toasters must the company sell to make a 15% profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A company makes and sells toasters. To make the toasters there is
a fixed monthly cost of $27,000 and an additional production cost of $30 per
toaster. The toasters sell for $75 each.
(a) Write down the cost function.
(b) Write down the revenue function.
(c) Find the profit function.
(d) Find the break even point.
(e) How many toasters must the company sell to make a 15% profit?

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Step 1: Define the Problem:

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Step 2: Write the cost function

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Step 3: write the revenue function:

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Step 4: Write the profit function

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Step 5: The break even point:

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Step 6: calculate the toasters:

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