A manufacturer has a monthly fixed cost of $100,000 and a production cost of $14 for each unit produ

Discussion in 'Calculator Requests' started by math_celebrity, Mar 14, 2021.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    A manufacturer has a monthly fixed cost of $100,000 and a production cost of $14 for each unit produced. The product sells for $20/unit.

    Let u be the number of units. We have a cost function C(u) as:
    C(u) = Variable cost * u + Fixed Cost
    C(u) = 14u + 100000

    We have a revenue function R(u) with u units as:
    R(u) = Sale Price * u
    R(u) = 20u

    We have a profit function P(u) with u units as:
    Profit = Revenue - Cost
    P(u) = R(u) - C(u)
    P(u) = 20u - (14u + 100000)
    P(u) = 20u - 14u - 100000
    P(u) = 6u - 1000000
     

Share This Page