Quest io n 12 A manufacturer can sell a certain product for R80 per unit. Total cost consists of a fixed overhead of R4, 500 plus production costs of R50 per unit. (a) How many units must the manufacturer sell to bre ak even? (b) What is the manufact urer's profit or loss if 200 units are sold? (c) How many units must the manufacturer sell to realize a profit of R900? Hint Express the cost function C(r), the revenue function R (r) and the profit fiunction P(a) as linear functions, where a is the number of units.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Quest io n 12
A manufacturer can sell a certain product for R80 per unit. Total cost consists of a
fixed overhead of R4, 500 plus production costs of R50 per unit.
(a) How many units must the manufacturer sell to bre ak even?
(b) What is the manufact urer's profit or loss if 200 units are sold?
(c) How many units must the manufacturer sell to realize a profit of R900?
Hint Express the cost function C (r), the revenue function R(r) and the profit
function P(r) as line ar functions, where r is the number of units.
Transcribed Image Text:Quest io n 12 A manufacturer can sell a certain product for R80 per unit. Total cost consists of a fixed overhead of R4, 500 plus production costs of R50 per unit. (a) How many units must the manufacturer sell to bre ak even? (b) What is the manufact urer's profit or loss if 200 units are sold? (c) How many units must the manufacturer sell to realize a profit of R900? Hint Express the cost function C (r), the revenue function R(r) and the profit function P(r) as line ar functions, where r is the number of units.
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