Cost, Revenue, and Profit Functions help

jaysquared2

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Sep 7, 2010
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The Gummy Ghosts Company produces packages of Gummy Ghosts candy. The finance department
has determined from sales data that the price-demand function is p(x)=3000-5x for 1 less/equal x less/equal 3000, where x is the number of packages of candy produced and sold.

a. Write a revenue function. R(x) = 3000x - 5x^2

b. If the variable costs are $0.74 per package and the fixed costs are $1200, find a cost function.
*This is the part I'm lost on.

C(x) = _______________


c. Using the revenue and cost functions, write a profit function. P(x) = _________________.
Simplify your answer.

I believe P(x)= R(x) - C(x), but I would need to find the above to do this.
All I'd have right now is:
P(x)= (3000x-5x^2) - C(x)
 
jaysquared2 said:
If the variable costs are $0.74 per package and the fixed costs are $1200, find a cost function.

When they say "variable costs" they mean the costs that vary as a function of x.

So, the variable costs are 0.74x.

C(x) = 0.74x + 1200

Also, you are correct that Profit = Revenue - Cost

 
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