Cost, Revenue and Profit Functions and Break-Even Points

See the attached file.
3. Antonio would like to invest $5,000. He has the choice of two accounts, one that pays 2.3% compounded continuously or the other that pays 2.5% compounded quarterly. Which account would yield the higher return?

4. A manufacturer of tennis shoes is planning a new line of shoes. For the first year, the fixed costs for setting up the new production line are $28,500. The variable cost for producing each pair of shoes are estimated at $50. The sales department projects that the shoes can be sold during the first year at a price of $95 per pair.

a. Formulate the cost function, the revenue function, and the profit function. Let x represent the number of pairs of shoes produced and sold.

C(x) =

R(x) =

P(x) =

b. What profit or loss will the company realize if 30,000 pairs of shoes are sold?

c. Find the number of pairs of shoes the company needs to produce and sell in order to break even.

d. If the company sells 100,000 pairs of shoes during the first year, compute the average cost of each pair of shoes.

... Moreover, q=1,200-20p, where p is the average price of a dinner. a.) Solve for p in terms of q and write the revenue and profit as functions of q. b ...

... does not understand economics, find the revenue and cost... and the profit at the highest price possible. ... b) Construct the profit function and list the key points...

... of 0.7867 implies that 78.67% of the revenue from each ... A breakeven point is the point where revenues covers all ... a is fixed cost and b is variable cost per unit ...

cost, profit and revenue function. The common economic functions can be summarized as follows: ... explains how to find average cost , profit, revenue and break...

1. The cost and the revenue functions (in dollars ... x) on the same set of axes B=What is the break-even point for this shop C=If the profit function is given ...

... as Revenue, Profit, Break Even point, Maximizing profit, and so on ... number one, my answer for the revenue function is r ... The price per camera at which x million ...

... at the output level where marginal revenue (MR) equals ... Firms advertise in order to change price elasticity of ... would mean a decrease in the marginal revenues. ...