Suppose a company has fixed costs of $4000 and variable costs per unit of x + 1160 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 16 x dollars per unit. 16 1300 - (a) Find the break-even points. (Enter your answers as a comma-separated list.) (b) Find the maximum revenue. (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find the maximum profit. %24 (d) What price will maximize the profit? (Round your answer to the nearest cent.)
Suppose a company has fixed costs of $4000 and variable costs per unit of x + 1160 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 16 x dollars per unit. 16 1300 - (a) Find the break-even points. (Enter your answers as a comma-separated list.) (b) Find the maximum revenue. (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find the maximum profit. %24 (d) What price will maximize the profit? (Round your answer to the nearest cent.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:15
x+1160 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is
16
Suppose a company has fixed costs of $4000 and variable costs per unit of
1.
1300 x dollars per unit.
16
(a) Find the break-even points. (Enter your answers as a comma-separated list.)
(b) Find the maximum revenue.
$.
(c) Form the profit function P(x) from the cost and revenue functions.
P(x) =
%3D
Find the maximum profit.
$4
(d) What price will maximize the profit? (Round your answer to the nearest cent.)
%$4
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Expert Solution
Step 1
Given,
fixed cost = $4000
variable cost =
selling price =
[a]
For Breakeven point :-
Total profit = 0
Total income - Total cost = 0
[x*()] - [x*()] -4000 = 0
-x2 + 140 x - 4000 = 0
By solving, we get, x = 40,100
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