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The total cost C as a function of the number of units produced is C(x) = 248000 + 68.28x, the revenue function is R(x) = 98.96x and the profit function is P(x) = 98.96x - 248000 - 68.28x
The given parameters are
Fixed cost = $248,000
Variable cost = $68.28
Hence, the total cost C as a function of the number of units produced is C(x) = 248000 + 68.28x
Here, we have
Selling price = $98.96
This means that
R(x) = Selling price * x
Hence, the revenue function is R(x) = 98.96x
This is calculated as:
P(x) = R(x) - C(x)
So, we have:
P(x) = 98.96x - 248000 - 68.28x
Hence, the profit function is P(x) = 98.96x - 248000 - 68.28x
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