Q:

8. Current Electronics plans to introduce a new laptop computer. The fixed costs are $125,300, and the variable costs are $450 per unit. The revenue from each computer is $800. Find the following: (5 points) a) The total cost C(x) of producing x computers. b) The total revenue R(x) from the sale of x computers. c) The total profit P(x) from the production of and sale of x computers. d) The profit or loss from the production and sale of 400 computers e) The break-even point.

Accepted Solution

A:
Answer:a) C(x) = 125300 + 450xb) R(x) = 800xc) P(x) = 350x - 125300d) Profit of $14,700e) 358 computersStep-by-step explanation:The fixed costs are $125,300, and the variable costs are $450 per unit. The revenue from each computer is $800. a) The total cost C(x) of producing x computers. C(x) = 125300 + 450xb) The total revenue R(x) from the sale of x computers. R(x) = 800xc) The total profit P(x) from the production of and sale of x computers. P(x) = R(x) - C(x).P(x) = 800x - (125300 + 450x) = 800x - 125300 - 450x = 350x - 125300P(x) = 350x - 125300d) The profit or loss from the production and sale of 400 computers P(400) = 350.400 - 125300 = 140000 - 125300 = 14700Profit of $14,700e) The break-even point.R(x) = C(x)800x = 125300 + 450x350x = 125300x = 125300/350x = 358The break even point is 358 computers.