Question

A company that sells radios has yearly fixed costs of $600,000. It costs the company $45 to produce each radio. Each radio will sell for $65. The company's costs and revenue are modeled by the following functions, where represents the number of radios produced and sold:C(x)=600,000+45xR(x)=65x. This function models the company's costs This function models the company's revenue. Find and interpret (R−C)(20,000), (R−C)(30,000), and (R−C)(40000).

Answer 1

Answer: R - C (x) is the profit or loss this company will have if they produce and sell x radios

(R−C)(20,000) = -200000

(R−C)(30,000) = 0

(R−C)(30,000) = 200000

Step-by-step explanation:

C(x)=600,000+45x

R(x)=65x

R - C (x) is the profit or loss this company will have if they produce and sell x radios

R - C (x) = 65x - (600,000+45x) = 65x - 600,000-45x = 20x - 600000

(R−C)(20,000) = 20*20000 - 600000 = 400000 - 600000 = -200000

A loss of -$200,000

(R−C)(30,000) = 20*30000 - 600000 = 600000 - 600000 = 0

Equilibrium point

(R−C)(30,000) = 20*40000 - 600000 = 800000 - 600000 = 200000

A profit of $200,000