The cost function of a company is c=0.01x square+2x+25, wherexis the produced unit of its price is Rs.30. the profit functionisgiven by 30x-C. Find the number of units the company mustproduceto obtain maximum profit. What is the maximum profit?
The cost function of a company is c=0.01x square+2x+25, wherexis the produced unit of its price is Rs.30. the profit functionisgiven by 30x-C. Find the number of units the company mustproduceto obtain maximum profit. What is the maximum profit?
Related questions
A company produces only one product. Normal capacity is 20000 unitsper year and the unit sales price is Rs.5 relevant costsare:
| Unit Variable Cost | Total Fixed Cost |
Materials | Rs.1.50 | |
Directorlabour | 1.20 | |
Factory Overhead | 0.45 | Rs.15000 |
Marketing expenses | 0.35 | 5000 |
Administrative expenses | 6000 |
Required: Compute(2) break even point in units of product (2) break even point in sales (3) the number of unitsproduct that must be produced and sold to achieve a profit ofRs.10000 and (4) the sales revenue required to achieve a profit ofRs.10000. (20)
| The cost function of a manufacturing concern is linear as follows: | ||||||||
| C(x) = 25x + 15,000 where C(x) is the total cost in dollars of producing x units, | ||||||||
| x is the number of units produced .Its revenue function is non-linear, however, as follows: | ||||||||
| R(x) = -0.01x2 + 50x | ||||||||
| R(x) is the total revenue in dollars from the sale of x units | ||||||||
| x is the number of units sold | ||||||||
| a) What is the profit function? | ||||||||
| b) Find the breakeven points for this firm. | ||||||||
| c) What would be the maximum profit, and how many units of their product must be sold to achieve this maximum? | ||||||||
