00:01
Suppose a company has fixed cost of 36 ,000 and a variable cost of 3x plus 144.
00:07
For 13x plus 144.
00:12
Yes.
00:14
Plus 444.
00:15
Okay, things are a little fuzzy.
00:17
Where x is the total number of products of units produced.
00:21
So now we know that the revenue is 16, or the selling price is 1674 minus 23x.
00:29
We want to know, i'm assuming here, they want to maximize the profit.
00:35
So let's first figure out what our costs are going to be.
00:39
So we have our cost function.
00:42
It's going to cost $36 ,000.
00:45
Then we're going to have variable cost of this amount per unit.
00:50
So how many units are we going to have? well, we're going to be selling x units.
00:55
So our variable costs are going to be 13x plus 1 .4.
00:59
24 times the number of units that we're selling.
01:03
My selling price is going to be the same thing.
01:06
This is my selling price, but we're going to sell x number of units.
01:10
So my selling, my revenue then, it's going to be x times 1674 minus 23x.
01:17
So how do we find the profit? profit is going to be your revenue minus your cost...