You have a start-up company that develops and sells a gaming app for smartphones. You need to analyze your company’s financial performance by understanding your cost, revenue, and profit (in U.S. dollars).
The monthly cost function of developing your app is as follows: Cx=3x+h
where:
Cx is the cost
x is the number of app downloads
$3 is the variable cost per gaming app download
h is the fixed cost
The monthly revenue function, based on previous monthly sales, is modeled by the following function: Rx=-0.4x2+360x, 0≤x≤600. The monthly profit function (in U.S. dollars), Px, is derived by subtracting the cost from the revenue, that is Px=Rx-Cx. Based on the first letter of your last name, choose a value for your fixed cost, h.
First letter of your last name Possible values for h
G–L $4,501–5,000
Use your chosen value for h to write your cost function, C(x). Then, use Px=Rx-Cx to write your simplified profit function.
