Solve the problem.
-Steve invests in a circus production. The cost includes an overhead of $56,000, plus production costs of $5000 per performance. A sold-out performance brings in $13,000. Let x represent the number of sold-out
Performances and write the cost function, C and revenue function, R.
A) $C ( x ) = 56,000 + 5000 x$
$R ( x ) = 13,000 x$
B) $C ( x ) = 56,000 + 13,000 x$
$R ( x ) = 5000 x$
C) $C ( x ) = 5000 x$
$R ( x ) = 56,000 + 13,000 x$
D) $C ( x ) = 56,000 x + 5000$
$R ( x ) = 13,000 x$

Question

Solve the problem.
-Steve invests in a circus production. The cost includes an overhead of $56,000, plus production costs of $5000 per performance. A sold-out performance brings in $13,000. Let x represent the number of sold-out
Performances and write the cost function, C and revenue function, R. 
A) $C ( x ) = 56,000 + 5000 x$
$R ( x ) = 13,000 x$
B) $C ( x ) = 56,000 + 13,000 x$
$R ( x ) = 5000 x$
C) $C ( x ) = 5000 x$
$R ( x ) = 56,000 + 13,000 x$
D) $C ( x ) = 56,000 x + 5000$
$R ( x ) = 13,000 x$

Quizplus · Accepted Answer

The cost function includes an overhead of $56,000, which is a fixed cost, and a production cost of $5,000 per performance, which is a variable cost. This can be expressed as C(x) = 56,000 + 5,000x. The revenue function, on the other hand, is simply the revenue generated by x sold-out performances, which is R(x) = 13,000x. Therefore, option A is the correct choice.

Solve the Problem C(x)=56,000+5000xC ( x ) = 56,000 + 5000 xC(x)=56,000+5000x

Solve the Problem $C ( x ) = 56,000 + 5000 x$