00:01
Alrighty, so we have information for cost of materials, labors, and fixed costs, and our selling price.
00:08
So first things first, we're going to define our variables.
00:12
I'm going to say x equals the number of units, either we produce or sell.
00:21
So first, we're going to need our cost function.
00:25
So i'm going to say c of x is going to be 250 for each unit.
00:36
Plus four for each unit.
00:39
So i'm going to combine those and multiply it by x plus our fixed costs.
00:43
So even if we don't make anything, we're still going to have to pay this fixed cost.
00:48
So if i were to simplify this, we could just say c of x equals 6 .5 times x plus 18 ,000.
00:57
And now we want our revenue function.
01:02
So we can say r of x is just going to be our selling price...