Question

A company makes jackets. They have fixed costs and variable costs. Total costs are given by fixed costs plus total variable costs. If x represents the number of jackets produced the total cost function for producing x jackets is C(x) = 0.43x2 + 18.3x + 15.6
The company finds that it can lower its price as it sells more jackets. The selling price p for a jacket thus depends on x and is given by the expression p = −0.02x + 129 . What is the revenue function R(x)?( total money brought in

Answer 1

Revenue = p(x) - C(x)

Revenue = money from selling - cost of making the stuff sold.