Concept explainers
The total cost C for a manufacturer during a given time period is a function of the number N of items produced during that period. To determine a formula for the total cost, we need to know the manufacturer's fixed costs (covering things such as plant maintenance and insurance), as well as the cost for each unit produced, which is called the variable cost. To find the total cost, we multiply the variable cost by the number of items produced during that period and then add the fixed costs.
The total revenue R for a manufacturer during a given time period is a function of the number N of items produced during that period. To determine a formula for the total revenue, we need to know the selling price per unit of the item. To find the total revenue, we multiply this selling price by the number of items produced.
The profit P for a manufacturer is the total revenue minus the total cost. If this number is positive, then the manufacturer turns a profit, whereas if this number is negative, then the manufacturer has a loss. If the profit is zero, then the manufacturer is at a break-even point.
In general, the highest price p per unit of an item at which a manufacturer can sell N items is not constant but is rather a function of N. The total revenue R is still the product of p and N, but the formula for R is more complicated when p depends on N. The manufacturer has developed the following table showing the highest price p, in dollars, of a widget at which N widgets can be sold.
N = Number of widgets sold |
p = Price |
---|---|
100 | 46 |
200 | 42 |
300 | |
400 | 34 |
500 |
(b) Use the formula from part (a) and the fact that R is the product of p and N to find a formula expressing the total revenue R as a function of N for this widget manufacturer.
R =
(c) Express using functional notation the total revenue of this manufacturer if there are 375 widgets produced in a month, and then calculate that value. (Round your answer to the nearest cent.)
R( ) = $
Trending nowThis is a popular solution!
Step by stepSolved in 4 steps
- The daily demand price function of selling x units of a product is given by p 100 - 4x. What is the maximum revenue? Select one: O a. $12.5 O b. $625 O c. $10000 O d. $6250 Clear my choicearrow_forwardWhen a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as the product or service demand . As the price of a product or service increases, the demand usually decreases, and this drives the price down. Companies use the estimated demand to determine how much of a product or service they are willing to supply at different prices. As the price of a product or service increases, companies are willing to supply more of it because they will earn more money. If you graph the demand and the supply curves on the same xy-plane, they will sometimes intersect at the point where the price and the supply are in equilibrium. Consider the scenario below. Yaseen is a local artist who wants to increase the amount of money she earns every month by selling at-home painting kits. These kits will include a photograph of the finished painting, a link and password to Yaseen’s YouTube channel where she will…arrow_forwardA certain cost function has the following graph: 8,000 6,000 4,000 2,000 0. 50 100 150 200 Items Dollarsarrow_forward
- A firm produces headphones in two qualities, Basic (B) and Premium (P). For the coming year, the estimated quantity produced of B is 60% higher than that of P. The firm makes a markup of 170% on both products. The ratio between the profits per unit between P and B is 2. The cost price for P is $260. If the profit target is $115 362 over the next year, how much of each of the two qualities must be produced and what are the two selling prices? (Round the quantities to the nearest unit and the prices to 2 digits after the decimal point if needed) Quantity of B = Answer units Quantity of P = Answer units Selling price of B = Answer $ Selling price of P = Answer $arrow_forwardrials eo uations ow....zip Process . @ 2 D W Yaster Outfitters manufactures and sells extreme-cold sleeping bags. The table below shows the price-demand and total cost data, where: D • p is the wholesale price (in dollars) of a sleeping bag for a weekly demand of a sleeping bags; . C is the total cost (in dollars) of producing a sleeping bags. x (sleeping bags) p ($) 95 240 235 155 50 120 180 220 Use this data to create regression models to answer all of the questions below. #3 Price Model Find a quadratic regression equation for the price-demand data, using a as the independent variable. E p=a+bx+cr² Round a to the nearest integer, round b to 2 decimal places, and round c to 4 decimal places. Use this price model to answer question 1-2 below. $ 4 5 6 MacBook Pro C ($) 13,000 14,300 18,500 21,000 Y PEAR & * 8 ( 9 0 0 P Aarrow_forwardThe total cost C for a manufacturer during a given time period is a function of the number N of items produced during that period. To determine a formula for the total cost, we need to know the manufacturer's fixed costs (covering things such as plant maintenance and insurance), as well as the cost for each unit produced, which is called the variable cost. To find the total cost, we multiply the variable cost by the number of items produced during that period and then add the fixed costs.Suppose that a manufacturer of widgets has fixed costs of $9000 per month and that the variable cost is $14 per widget (so it costs $14 to produce 1 widget). (a) Use a formula to express the total cost C of this manufacturer in a month as a function of the number of widgets produced in a month. (Use N as the number of widgets produced in a month.)C = (b) Express using functional notation the total cost if there are 225 widgets produced in a month.C( )Calculate the total cost if there are 225…arrow_forward
- The cost C (in dollars) of producing x units and the revenue R (in dollars) obtained by selling x units are shown in the figure. y 300 000 R 250 000 200 000 150000 100 000 50 000 X 1000 2000 3000 4000 5000arrow_forward1. Consider the region enclosed between the graph of f(x) = x² - In x and the x-axis for 1 ≤ x ≤ 5. 2 (a) Find MRAM4, the area estimate obtained using 4 midpoint rectangles. (b) Use MRAM to estimate the area with accuracy of 2 decimal places.arrow_forwardTurnover is planned at 2.5 for the six-month peris starting February 1 through July 31. Average weekly sales for that period are $75,000. What average stock should be carried in this situation? $800,000 $900,000 O $720,000 $780,000arrow_forward
- Advanced Engineering MathematicsAdvanced MathISBN:9780470458365Author:Erwin KreyszigPublisher:Wiley, John & Sons, IncorporatedNumerical Methods for EngineersAdvanced MathISBN:9780073397924Author:Steven C. Chapra Dr., Raymond P. CanalePublisher:McGraw-Hill EducationIntroductory Mathematics for Engineering Applicat...Advanced MathISBN:9781118141809Author:Nathan KlingbeilPublisher:WILEY
- Mathematics For Machine TechnologyAdvanced MathISBN:9781337798310Author:Peterson, John.Publisher:Cengage Learning,