Question

* City Computers has determined that the price-demand and revenue functions are given by p(x) = 2,000 – 6x and R(x) = x(2,000 – 6x), where x is in thousands of computers. This means that R(x) is measured in thousands of dollars.

Additionally we know:

* The fixed cost is $100,000.

* The variable cost is $250 per computer.

This means that the cost function is given by C(x) = 100 + 250x. Also again C(x) is measured in thousands of dollars.

They would like your help with the following deliverables:

1. A profit function for selling x thousand notebook computers.
2. The expected profit for sales of the following quantities of computers: 5,000, 10,000,15,000, 20,000, and 25,000 computers.
3. The cost, revenue and profit functions on one Excel graph.
4. The wholesale price and production level that will maximize profits.

Answer 1