Question

A stereo manufacturer determines that in order to sell x units of a new stereo,the price per unit,in dollars,must be P (x) =100-x.
He also determines that the total cost of producing x units is given by C (x)=3000+2x.Find the total revenue

Answer 1

Hi, and welcome to QuestionCove!

The total revenue is equal to all the money that is gained from sales. Keep in mind that revenue is not the same as profit; profit would be revenue minus costs.
In this case, the revenue can be found by multiplying the number of stereos sold by the price of each stereo. As the question tells us, the number of stereos sold is equal to x. Also, the price of each stereo is given as (100 - x). Multiplying x*(100-x) gives:
100x - x^2
To find the revenue, simply replace "x" in the above expression with the number of stereos sold.

As a follow-up, if you want to calculate profit, use the Cost equation to calculate cost, then subtract that value from Revenue to find Profit.