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wicked
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A fur dealer finds that when coats sell for $ 3200 , monthly sales are 50 coats. When the price increases to $ 3600 , the demand is for 40 coats. Assume that the demand equation is linear.
(a) Find the demand and revenue equations (in terms of x, the number of coats sold monthly).
The demand equation is p =
and the revenue equation is R(x) = .
(Be sure the equations are simplified.)
(b) If overhead is $ 3000 per month and the production cost per coat is $ 1000 , find the cost equation and the profit equation.
The cost equation is C(x) =
and the profit equation is P(x) =
(c) Find the level of production that maximizes profit.
The level of production is
(a) Find the demand and revenue equations (in terms of x, the number of coats sold monthly).
The demand equation is p =
and the revenue equation is R(x) = .
(Be sure the equations are simplified.)
(b) If overhead is $ 3000 per month and the production cost per coat is $ 1000 , find the cost equation and the profit equation.
The cost equation is C(x) =
and the profit equation is P(x) =
(c) Find the level of production that maximizes profit.
The level of production is