Question

establish an equation to determine revenue and total cost from a fixed cost of $55, sell price of $15 and labor cost $4. Interpret your result from each.

Answer 1

55=15x-4

Answer 2

i dont think fixed cost comes in revenue equation

i guess revenue is just

R = 15x

Answer 3

i may be wrong !

Answer 4

Is that correct?

Answer 5

revenue equals earned income right?

Answer 6

revenue is just how much money you make by selling stuff
to know profit, you subtract all your expenses from the revenue earned.

Answer 7

ok, I have a fixed cost of $55 and a selling price of $15 with a labor cost of $4. Could you help me an equation to establish revenue with these figures?

Answer 8

you're selling each item at a price of $15

Answer 9

forget about costs, they dont come in Revenue equation

Answer 10

right

Answer 11

ok

Answer 12

so... if you sell "x" items, what revenue you will make (how much money you will get ) ?

Answer 13

15 times x =??

Answer 14

thats right !

just label the revenue as R,

R = 15x

Answer 15

oh ok.

Answer 16

thats the revenue equation

Answer 17

really? thats it?
ok how would we establish an equation for total cost?

Answer 18

yep thats it !

Answer 19

total cost = fixed cost + variable cost

Answer 20

fixed cost you knew already

Answer 21

variable cost = $4 per EACH item

so if you make "x" items, how much the cost will be ?

Answer 22

just compute it, and put it in an equation. you just need to know these definitions, thats all, then its just simple algebra :D

Answer 23

55+15x?

Answer 24

nope. 15 is the selling price. its not labor cost.

Answer 25

55=y+15x??

Answer 26

its,

total cost C = fixed cost + variable cost

C = 55 + 4*x
C = 55 + 4x

Answer 27

what is the formula for profit?

Answer 28

profit is just,

"money you make by selling product" minus "cost in making the product"

Answer 29

profit = revenue - cost