00:01
So for this problem, we have a company that has fixed costs of $2 ,800 and variable costs given per unit.
00:09
So we know that total cost is going to be $2 ,800 plus the variable costs of $15 over 16x plus $1090 per unit.
00:23
So that's going to be 15 over 16x squared plus 1090x.
00:33
And then we are given the selling price is going to be 1 ,200 minus 116.
00:40
So the revenue, which is price times quantity, is going to be 1 ,200x minus 116 squared.
00:48
So the profit is going to be revenue minus cost.
00:52
So we'll have a negative, 1 ,200x minus 116 squared, minus 2 ,800 minus 1516x squared, minus 1090x.
01:08
So let's graph this and see what we can make of this profit function...