Question

Turn this into an equation?
A cellular phone manufacturer sells its phones for $212 each. The manufacturer incurs $3,434 in overhead costs and $49 per phone in production costs. If x represents the number of phones sold, what is the profit function for this company?
A. P(x) = 163x - 3,434
B. P(x) = 49x - 3,434
C. P(x) = 261x + 3,434
D. P(x) = 212x + 3,434

Answer 1

Ok sooo the lets determine the profit made of a single phone disregarding the overhead costs
Firstly They charge $212 per phone But it costs the company $49 to produce it
So the revenue they make per phone is $212-$49=163
So in reality every time they sell a phone they make $163
But keep in mind they also have to pay $3,434 for overhead costs such as electricity, phone bills , hydro and whtvr else
So how do you think our equation woud look like?

Answer 2

Well, I know that 163 will have the variable X; the word "per" is how to find the number that gets the variable.
So I have
163x
If they have to pay 3,434 then that would most likely be -3,434 because they take that money out of what they earn

Answer 3

Yaa you got it. Since you have the options available its pretty easy in finding the equation

Answer 4

"Well, I know that 163 will have the variable X; the word "per" is how to find the number that gets the variable. "
Ahhh gonna use this explanation next time explaining this concept to someone. I was trying to figure out how to explain this concept of fixed costs and variables

Answer 5

Sure thing! Thanks for your help with this!!! xx