Solve the problem.
-A firm making toaster ovens finds that the total cost, C(x), of producing x units is given by C(x) = 25x + 340. The revenue, R(x), from selling x units is determined by the price per unit times the number of units sold, thus R(x) = 35x. Find and interpret (R -C)(78).
A) $5020 profit, income exceeds cost
B) -$440 loss, cost exceeds income
C) $112 profit, income exceeds cost
D) $440 profit, income exceeds cost

Question

Quizplus · Accepted Answer

(R - C)(78) calculates the profit from selling 78 units, where R(78) = 35(78) = 2730 and C(78) = 25(78) + 340 = 2290. Thus, (R - C)(78) = 2730 - 2290 = 440, indicating a $440 profit, where income exceeds cost.

Solve the Problem. -A Firm Making Toaster Ovens Finds That the Total Cost