how to find maximum profit with cost and revenue functions
Where R is maximum revenue; p is the price of the good or service at max demand Cost, Revenue & Profit Examples 1) A soft-drink manufacturer can produce 1000 cases of soda in a week at a total cost of $6000, and 1500 cases of soda at a total cost of $8500. Marginal cost, marginal revenue, and marginal profit all involve how much a function goes up (or down) as you go over 1 to the right — this is very similar to the way linear approximation works. I attempted to take the derivative of the cost function but then noticed its a cost function not revenue, so thats out of the bat. Homework Help. Total revenue and total profit from selling 25 tables. If one type of product is being sold at one price, the revenue function is simply: R = p x. Find the manufacturer’s weekly fixed costs and marginal cost per case of soda. One is to solve for the value of Q that makes the economic profit function equal to zero: 0 = $1.2 Q − $40,000 or Q = $40,000/$1.2 = 33,334 units. 3.7 million tough questions answered. Your dashboard and recommendations. Personalized courses, with or without credits. Switch to. Revenue is Income, Cost is expense and the difference (Revenue - Cost) is Profit or Loss. An equivalent approach is to find the value of Q where the revenue function and cost function have identical values. Once again put x = 25. Calculating the Revenue Function. Revenue Function; Cost Function; Profit Function; 1. Maximum Revenue Formula. The formula for calculating the maximum revenue of an object is as follows: R = p*Q. Home. Where: R = revenue, p = price per unit, x = number of units sold. Get the detailed answer: How to find maximum profit with cost and revenue functions? So the Revenue is the amount you sell the tables for multiplied by how many tables. A small company produces and sells x products per week. I am struggling to find the break even points, maximum revenue, and to write out the profit function. They find that their cost in dollars is C(x) = 50 + 3x and their revenue … R(x) = 200 x = 200(25) = 5000. I also attempted to take Cbar and try to get average but then saw it asked for profit then I got confused and decided to ask for help. Say that you have a cost function that gives you the total cost, C(x), of producing x items (shown […] Maximum profit, given revenue and cost equations. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. Solution: We would like to find a function that describes this situation. Booster Classes. Recall Study … Suppose further that the selling price of its product is 2054 −(2/3)*x dollars per unit. In this section we will give a cursory discussion of some basic applications of derivatives to the business field. Solution Profit = Revenue - Cost: P(x) = (1000x - x^2) - … Hello, I am trying to solve this problem: a company has fixed costs of $57,600 and variable costs of (1/3)*x + 222 dollars per unit, where x is the total number of units produced. We will revisit finding the maximum and/or minimum function value and we will define the marginal cost function, the average cost, the revenue function, the marginal revenue function and the marginal profit function. Total profit P is the difference between total revenue R and total cost C. Given the following total-revenue and total-cost functions R(x) = and C(x) = , find the total profit, the maximum value of the total profit, and the value of x at which it occurs. P(x) = R(x) - C(x) = 5000 - 4700 = 300 (4700 came from part 1)
Samyang Potato Ramen Review, Hp Pavilion Gaming Laptop, Rimworld Base Mod Manager, Guava Tree For Sale, Cod Zombies Piano Easy, Great Pyrenees Puppies For Sale In Jacksonville, Fl, Pricked By Cactus Swelling, Michael Faye Givedirectly, Arcanis Paradigm Concepts,
