Revenue Function and Cost Function
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A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $54,000. Another month he had total costs of $20,800 on a sales volume of 400 items. He also finds that the break even point is 20 items.
a. Find the revenue function.
b. Find the cost function.
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Solution Summary
Based on the given information, the revenue and cost functions are estimated. The solution to the two questions include step by step details and calculations.
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A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $54,000. Another month he had total costs of $20,800 on a sales volume of 400 items. ...
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