A manufacturer of DVD players has monthly fixed costs of $5500 and variable costs of $50 per DVD player and it sells the DVD players for $150 per unit. Write the function that models the profit P from the production and
Sale of x DVD players in a month.
A) $P = 5500 x - 100$
B) $P = 200 x - 5500$
C) $P = 100 x - 5500$
D) $P = 100 x + 5500$

Question

A manufacturer of DVD players has monthly fixed costs of $5500 and variable costs of $50 per DVD player and it sells the DVD players for $150 per unit. Write the function that models the profit P from the production and
Sale of x DVD players in a month. 
A) $P = 5500 x - 100$
B) $P = 200 x - 5500$
C) $P = 100 x - 5500$
D) $P = 100 x + 5500$

Quizplus · Accepted Answer

The profit function is calculated as total revenue minus total costs. Revenue is $150x$ and total costs are $5500 + 50x$. Therefore, the profit function is $P = 150x - (5500 + 50x) = 100x - 5500$.

A Manufacturer of DVD Players Has Monthly Fixed Costs of $5500