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Assignment-3 Assignment-3: (Business Mathematics and Statistics (Business Mathematics and Statistics

1) The profit function for a firm selling a single product for $65 per unit is P(x) = $65x - $20x - $27.5x - $100,000. Profit is $400,000 if annual sales are 20,000 units. 2) For a college newspaper, the cost is C(x) = $0.30x + $60, revenue is R(x) = $0.40x, and profit is P(x) = $0.10x - $60. Profit from selling 500 copies is $40. Break even is sold at 600 copies. 3) The cost function for renting tuxedos

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27 views

Assignment-3 Assignment-3: (Business Mathematics and Statistics (Business Mathematics and Statistics

1) The profit function for a firm selling a single product for $65 per unit is P(x) = $65x - $20x - $27.5x - $100,000. Profit is $400,000 if annual sales are 20,000 units. 2) For a college newspaper, the cost is C(x) = $0.30x + $60, revenue is R(x) = $0.40x, and profit is P(x) = $0.10x - $60. Profit from selling 500 copies is $40. Break even is sold at 600 copies. 3) The cost function for renting tuxedos

Uploaded by

Maaz Satti
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Assignment-3

(Business Mathematics and Statistics


Q- 1: A firm sells single product for $65 per unit. Variable costs per unit are $20 for
materials & $27.5 for labour. Annual fixed costs are $100,000. Construct the profit
function 𝑃(𝑥)= (𝑥)−𝐶(𝑥) stated in terms of 𝑥, which is the number of units produced
and sold. How much profit is earned if annual sales are 20,000 units.

Q- 2: College newspaper company, has fixed production costs of $60 per edition, and
marginal printing and distribution costs of 0.30$/copy. The Company sells for 0.40
$/copy.
a) Write down the associated cost, revenue, and profit functions.
b) What profit (or loss) results from the sale of 500 copies of the Company?
c) How many copies should be sold in order to break even?
Q- 3: The cost of renting tuxes for the Choral Society's formal is $25 down, plus $76
per tux. Express the cost C as a function of x, the number of tuxedos rented.
(a) What is the cost of renting 5 tuxes?
(b) What is the cost of the 5th tux?
(c) What is the cost of the 3098th tux?
(d) What is the variable cost?

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