+89 2. A factory has fixed monthly costs of e20,000. The material costs per unit is e2.5 and the sale price is e 6 per unit.
(a) Find the total cost function, and the total revenue function.
(b) How many units need to be sold per month to break even?
(c) Find the profit function, and determine the revenue when 10,000 units are sold per month.
(d) How many units need to be sold per month to yield a monthly profit of e 50,000?
+118612 2. A factory has fixed monthly costs of e20,000. [ I am assuming that is 20000 per month]
The material costs per unit is e2.5 and the sale price is e 6 per unit.
(a) Find the total cost function, TC=20000+2.5U
and the total revenue function. TR=6U
(I am using U for units - I am nor sure if there is aome other letter that should be used)
(b) How many units need to be sold per month to break even?
20000+2.5U=6U
20000 = 3.5U
20000/3.5 =U
U = 5714 to the nearest unit
(c) Find the profit function, and determine the revenue when 10,000 units are sold per month.
P = revenue - cost
P = 6U-(20000+2.5U)
P = 3.5U - 20000
TR=6U
TR(10000)=6*10000 = e60000
(d) How many units need to be sold per month to yield a monthly profit of e 50,000?
P = 3.5U - 20000
3.5U - 20000>50000
3.5U>70000
U>70000/3.5
U>20,000
20,000 units will need to be sold in the month
