A manufacturing process has a total cost function given by the equation C = 10 + 4x and a total revenue function given by the equation R = 22x - 4x2 where x is the quantity produced in ’00 units and C and R , are both N$’00. i. Using the cost equation, C = 10 + 4x, identify the value of the company’s fixed costs (i.e. those that remain constant irrespective of the quantity produced) and variable costs (i.e. those that vary according to production) for this manufacturing process. ii. Construct a table to calculate the value of C and R using the values 0, 1, 2, 3, 4 and 5 for x. iii. (Using the data from the table in (ii), plot a fully labelled graph for C and R against x. Use the graph drawn in (iii) to determine:
A manufacturing process has a total cost
C = 10 + 4x
and a total revenue function given by the equation
R = 22x - 4x2
where x is the quantity produced in ’00 units and C and R , are both N$’00.
i. Using the cost equation, C = 10 + 4x, identify the value of the company’s fixed
costs (i.e. those that remain constant irrespective of the quantity produced) and
variable costs (i.e. those that vary according to production) for this
manufacturing process.
ii. Construct a table to calculate the value of C and R using the values 0, 1, 2, 3, 4
and 5 for x.
iii. (Using the data from the table in (ii), plot a fully labelled graph for C and R
against x.
Use the graph drawn in (iii) to determine:
iv. The quantity of units produced where the manufacturing process breaks even
(i.e. where neither a profit nor a loss is made).
v. The
in which the manufacturing process makes a loss.
vi. The profit or loss made when 350 units are produced.
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