A small business can produce a maximum of 43 of its product per month and sell them for $7 each. The variable costs are $2 per unit and fixed costs are $125 per month. a) Find the revenue function. R(x) = b) Find the cost function. C(x) = =

A small business can produce a maximum of 43 of its product per month and sell them for $7 each. The variable costs are $2 per unit and fixed costs are $125 per month. a) Find the revenue function. R(x) = b) Find the cost function. C(x) = =

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

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Question

A small business can produce a maximum of 43 of its product per month and sell them for $7
each. The variable costs are $2 per unit and fixed costs are $125 per month.
a) Find the revenue function.
R(x) =
b) Find the cost function.
C(x) =
c) Calculate the number of items needed to be sold per month to break-even.
d) Calculate the revenue at the break-even (round off to the nearest cent).
$

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