Question

Using this information and the relationship between revenue, cost, and profit find the linear relation that you would expect to model profit.

Answer 1

Let's say you own a silk screening business in which you print t-shirts. The cost of printing the t-shirts would be $2 per t-shirt in this particular year plus the cost of ink for the year which is a flat rate of $500. The cost equation for this business would be:

C = 500 + 2x where x represents the number of t-shirts printed

Let's say that the t-shirts are sold to customers at a price of $5 per t-shirt. The revenue equation of the business would be:

R = 5x where x represents the number of t-shirts sold or the number of customers who bought a t-shirt