Question 12 Marks
A company manufactures cassettes. Its cost and revenue functions are C(x) = 26,000 + 30x and R(x) = 43x, respectively, where x is the number of cassettes produced and sold in a week. How many cassettes must be sold by the company to realise some profit?
Answer
View full question & answer→Cost function: C(x) = 26000 + 30x Revenue function : R(x) = 43x For profit, R(x) > C(x)
⇒ 26000 + 30x < 43x
⇒ 43x - 30x > 26000
⇒ 13x > 26000
⇒ x > 2000
Hence, more than 2000 cassettes must be produced to get profit.
⇒ 26000 + 30x < 43x
⇒ 43x - 30x > 26000
⇒ 13x > 26000
⇒ x > 2000
Hence, more than 2000 cassettes must be produced to get profit.