I need to find the cost function only, I'm struggling with it. I've found the revenue and the price functions. I also need to know the two points it passes through. Getting startedIn this assignment you will be working with models for price, revenue, cost and profit for a small company that buys and resells iPhone cases.Sales data indicates that setting the price at per case at $12 results in the sale of 100 cases per week and that sales will double to 200 cases per week ifthe price is dropped to $11.00.o You will use this information to build a price model.T: cases bought for resale per week,p(x) : price per case to sell x cases per week($).The only expenses are IT services which cost $100 per week and the cost of buying inventory, which is $3.00 for each iPhone case.o You will use this information to build a cost model.: cases bought for resale per week,c(x) : cost to sell x cases per week($).

A cost function is a formula that predicts the cost that will be incurred at a certain level of activity. This method works best within a certain range of activity levels, after which it no longer produces accurate results. The mathematical expression of the cost function is: C(x)= FC + V(x), where C is total production cost, FC is total fixed costs, V is a variable cost, and x is the number of unitsLet price P(x)=ax+b When x=100 P(x)=ax+bP(100)=100a+b=12........(1) When x=200 P(x)=ax+bP(200)=200a+b=11........(2) Subtract equations (1) and (2) 200a+b=11100a+b=12----------100a=-1a=-0.01 Substitute a=-0.01 in equation (1) P(x)=100a+b=12 100(-0.01)+b=12 -1+b=12 b=12+1 b=13 Now, P(x)=ax+bP(x)=-0.01x+13 Total Cost=Fixed cost+Cost per unit×No. of unitsC(x)=100+3x

Business

Economics

ng started signment you will be working with models for price, revenue, cost and profit for a small company that buys and rese data indicates that setting the price at per case at $12 results in the sale of 100 cases per week and that sales will c rice is dropped to $11.00. u will use this information to build a price model. : cases bought for resale per week, p(x) : price per case to sell x cases per week($). nly expenses are IT services which cost $100 per week and the cost of buying inventory, which is $3.00 for each iPH u will use this information to build a cost model. x : cases bought for resale per week, c(x) : cost to sell x cases per week($).

ng started signment you will be working with models for price, revenue, cost and profit for a small company that buys and rese data indicates that setting the price at per case at $12 results in the sale of 100 cases per week and that sales will c rice is dropped to $11.00. u will use this information to build a price model. : cases bought for resale per week, p(x) : price per case to sell x cases per week($). nly expenses are IT services which cost $100 per week and the cost of buying inventory, which is $3.00 for each iPH u will use this information to build a cost model. x : cases bought for resale per week, c(x) : cost to sell x cases per week($).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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