OHaganBooks.com generates revenue through it o'Books e-book service.Author royalties and copyright fees cost the company $4 per novel, and themonthly cost of operating and maintaining the service amounts to $665. Thecompany is currently charging customers $6 per novel.Find the associated cost, revenue, and profit functions and use them todetermine how many novels must be sold in order to make a profit. (Hint: If thebreak-even is where they make no profit, you must round up to make a profit.)To make a profit they must sell at least:

Answered: OHaganBooks.com generates revenue…

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter4: Systems Of Linear Equations

Section4.3: Solve Mixture Applications With Systems Of Equations

Problem 158E: The manufacturer of an energy drink spends $1.20 to make each drink and sells them for $2. The...

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OHaganBooks.com generates revenue through it o'Books e-book service.
Author royalties and copyright fees cost the company $4 per novel, and the
monthly cost of operating and maintaining the service amounts to $665. The
company is currently charging customers $6 per novel.
Find the associated cost, revenue, and profit functions and use them to
determine how many novels must be sold in order to make a profit. (Hint: If the
break-even is where they make no profit, you must round up to make a profit.)
To make a profit they must sell at least:

Expert Solution

Step 1

$T h e c o m p a n y ’ s r e v e n u e f u n c t i o n, R (x) . T h e c o m p a n y ’ s \cos t f u n c t i o n, C (x) T h e c o m p a n y ’ s p r o f i t f u n c t i o n, P (x) P r i c e o f 1 b o o k t o b e s o l d = $ 6 C o s t u s e d i n r o y a l t i e s a n d c o p y r i g h t p e r b o o k = $ 4 L e t x n u m b e r s o f b o o k s a r e s o l d R e v e n u e i s e q u a l t o t h e n u m b e r o f b o o k s s o l d t i m e s t h e p r i c e p e r b o o k . T o o b t a i n t h e r e v e n u e f u n c t i o n, m u l t i p l y t h e o u t p u t l e v e l b y t h e p r i c e f u n c t i o n . ∴ R (x) = x . 6 = 6 x \cos t f u n c t i o n i s g i v e n b y m u l t i p l y i n g n u m b e r o f b o o k s s o l d a n d C o s t u s e d i n r o y a l t i e s a n d c o p y r i g h t p e r b o o k a n d t h e n a d d i n g t h e f i x e d \cos t i . e $ 665 ∴ C (x) = 4 x + 665 P r o f i t i s w h e n r e v e n u e f u n c t i o n i s g r e a t e r t h a n t h e \cos t f u n c t i o n ∴ P (x) = R (x) - C (x) P (x) = 6 x - 4 x - 665 = 2 x - 665$

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