Question

A fur dealer finds that when coats sell for $ 2400 , monthly sales are 30 coats. When the price increases to $ 2850 , the demand is for 10 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 $ 2000 per month and the production cost per coat is $ 2500 , find the cost equation and the profit equation.

The cost equation is C(x) =

and the profit equation is P(x) = .
(Be