If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers. The demand for its product is p = 15 − x 125 , its production cost per unit is US$5.00 and its fixed cost are the same as for company A . (vii) Derive the total revenue function,R(x) for company B. (viii) Derive the profit function,Π(x) for company B. (x) How many t-shirts must company B sell to maximise its profit.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
If company A manufactures t-shirts and sells them to retailers for US$9.80 each.
It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per
unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.
The demand for its product is p = 15 −
x
125 , its production cost per unit is US$5.00
and its fixed cost are the same as for company A .
(vii) Derive the total revenue function,R(x) for company B.
(viii) Derive the profit function,Π(x) for company B.
(x) How many t-shirts must company B sell to maximise its profit.
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