Chapter 8, Problem 17MCCP

(a)

To determine

The cost function, C, of producing $x$ PDAs such that the fixed cost is $\$400,000$ and it costs $\$20$ to produce and $\$100$ to sell each PDA.

(b)

To determine

The revenue function, R, from the sale of $x$ PDAs such that the fixed cost is $\$400,000$ and it costs $\$20$ to produce and $\$100$ to sell each PDA.

(c)

To determine

To calculate: The profit function, P, from producing and selling $x$ PDAs where the fixed cost is $\$400,000$ and it costs $\$20$ to produce and $\$100$ to sell each PDA.

(d)

To determine

To calculate: The break-even point and describe it where the fixed cost is $\$400,000$ and it costs $\$20$ to produce and $\$100$ to sell each PDA.