Suppose that a company has fixed costs of -0 ---:-- ---0 400 dollars and variable costs of 0.7x + 1450 dollars per unit, where x is the number of units produced. Suppose further that the selling price of its product is 1550 – 0.25x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the nearest one. (a) Find the break-even points. The larger number of units at which break-even occurs is , with corresponding revenue dollars. and The smaller number of units at which break-even occurs is , with corresponding revenue dollars. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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Suppose that a company has fixed costs of
-0 ---:-- ---0
400 dollars and variable costs of
0.7x + 1450 dollars per unit, where
x is the number of units produced. Suppose further that the selling price of its product is
1550 – 0.25x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the
nearest one.
(a) Find the break-even points.
The larger number of units at which break-even occurs is
, with corresponding revenue
dollars. and
The smaller number of units at which break-even occurs is
, with corresponding revenue
dollars.
(b) Find the maximum revenue.
(c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)
Transcribed Image Text:Suppose that a company has fixed costs of -0 ---:-- ---0 400 dollars and variable costs of 0.7x + 1450 dollars per unit, where x is the number of units produced. Suppose further that the selling price of its product is 1550 – 0.25x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the nearest one. (a) Find the break-even points. The larger number of units at which break-even occurs is , with corresponding revenue dollars. and The smaller number of units at which break-even occurs is , with corresponding revenue dollars. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)
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