MATH SOLVE

2 months ago

Q:
# A company sells doughnuts. They incur a fixed cost of $23000 for rent, insurance, and other expenses. It costs $0.1 to produce each doughnut. The company sells each doughnut for $0.2. Part A. Construct a linear model that describes their total costs, C, as a function of the number of doughnuts, x, they produce.

Accepted Solution

A:

Answer:C(x) = 0.1x+23000Step-by-step explanation:Given that a company sells doughnuts. They incur a fixed cost of $23000 for rent, insurance, and other expenses. It costs $0.1 to produce each doughnut. The company sells each doughnut for $0.2.Let X be the no of units producedThen we have variable cost = 0.1xFixed cost = 23000 (irrespective of value of x)Total cost[tex]C(x) = 0.1x+23000[/tex]where C represents the total cost and x no of units produced.Revenue function would be[tex]R(x) = 0.2x[/tex] assuming all doughnuts are sold.Profit function would be[tex]P(X) = 0.1x-23000[/tex]