Concept explainers
Hunky Beef, a local sandwich store, has a fixed weekly cost of $525.00, and variable costs for making a roast beef sandwich are $0.55.
a. Let x represent the number of roast beef sandwiches made and sold each week. Write the weekly cost function, C, for Hunky Beef. (Hints: The cost function is the sum of fixed and variable costs.)
b. The function R(x) = –0.001x2 + 3x describes the money in dollars, that Hunky Beef takes in each week from the sale of x roast beef sandwiches. Use this revenue function and the cost function from part (a) to write the store’s weekly profit function, P. (Hints: The profit function is the difference between the revenue and cost functions.)
c. Use the store's profit function to determine the number of roast beef sandwiches it should make and sell each week to maximize profit. What is the maximum weekly profit?
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