A product has a fixed cost of 52500 and a production/variable cost of 8 per unit. The product sells for 13 per unit.
Compute the profit function and profit levels for the following unit amounts: 20000, 50000
Set up cost function C(x) where x is the number of units produced:
C(x) = Fixed Cost + Variable/Production cost * Number of units
C(x) = 52500 + 8x
Set up revenue function R(x) where x is the number of units sold:
R(x) = Sale Price * x
R(x) = 13x
Determine the Profit function P(x) where x is the number of units produced and sold:
Profit = Revenue - Cost
P(x) = R(x) - C(x)
P(x) = 13x - (52500 + 8x)
P(x) = 13x - 52500 - 8x
P(x) = 5x - 52500
Calculate the profit for 20000 units:
P(20000) = 5(20000) - 52500
P(20000) = 100000 - 52500
P(20000) = 47500
Calculate the profit for 50000 units:
P(50000) = 5(50000) - 52500
P(50000) = 250000 - 52500
P(50000) = 197500
Final Answer
P(20000) = 47500
P(50000) = 197500
P(50000) = 197500
You have 2 free calculationss remaining
What is the Answer?
P(20000) = 47500
P(50000) = 197500
P(50000) = 197500
How does the Cost Revenue Profit Calculator work?
Free Cost Revenue Profit Calculator - Given a total cost, variable cost, revenue amount, and profit unit measurement, this calculates profit for each profit unit
This calculator has 4 inputs.
This calculator has 4 inputs.
What 3 formulas are used for the Cost Revenue Profit Calculator?
C(x) = Variable Cost * x + Fixed Cost
R(x) = Sale Price * Units Sold
P(x) = R(x) - C(x)
For more math formulas, check out our Formula Dossier
R(x) = Sale Price * Units Sold
P(x) = R(x) - C(x)
For more math formulas, check out our Formula Dossier
What 7 concepts are covered in the Cost Revenue Profit Calculator?
- cost
- an amount that has to be paid or spent to buy or obtain something
- cost revenue profit
- fixed cost
- business expenses that are not dependent on the level of goods or services produced by the business
- function
- relation between a set of inputs and permissible outputs
ƒ(x) - profit
- The amount of money left over after paying costs/expenses
Profit = Revenue - Cost - revenue
- the money generated from normal business operations, calculated as the average sales price times the number of units sold
- variable cost
- costs that change as the quantity of the good or service that a business produces changes. V
Cost Per Unit x Total Number of Units
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