A company has a fixed cost of $26,000 / month when it is producing printed tapestries. Each item tha

Discussion in 'Calculator Requests' started by math_celebrity, Jul 26, 2021.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    A company has a fixed cost of $26,000 / month when it is producing printed tapestries. Each item that it makes has its own cost of $34. One month the company filled an order for 2400 of its tapestries, selling each item for $63. How much profit was generated by the order?

    Set up Cost function C(t) where t is the number of tapestries:
    C(t) = Cost per tapestry * number of tapestries + Fixed Cost
    C(t) = 34t + 26000

    Set up Revenue function R(t) where t is the number of tapestries:
    R(t) = Sale Price * number of tapestries
    R(t) = 63t

    Set up Profit function P(t) where t is the number of tapestries:
    P(t) = R(t) - C(t)
    P(t) = 63t - (34t + 26000)
    P(t) = 63t - 34t - 26000
    P(t) = 29t - 26000

    The problem asks for profit when t = 2400:
    P(2400) = 29(2400) - 26000
    P(2400) = 69,600 - 26,000
    P(2400) = 43,600
     

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