Using profit/cost/revenue concepts, it is found that:
- a) 400 cookies must be produced and sold to break even.
- b) The dollar amount coming in and going out is $400.
- c) The profit function is [tex]P(x) = 2x - 800[/tex]
- d) Kimmie will earn a profit of $240.
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- The revenue function, that is, how much Kimmie earns selling x cookies, is given by: [tex]R(x) = 5x[/tex]
- The cost function, that is, the cost of producing x cookies, is given by: [tex]C(x) = 800 + 3x[/tex]
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Question a:
The break even point is the value of x for which the revenue is the same as the cost, that is:
[tex]R(x) = C(x)[/tex]
Thus
[tex]5x = 800 + 3x[/tex]
[tex]2x = 800[/tex]
[tex]x = \frac{800}{2}[/tex]
[tex]x = 400[/tex]
400 cookies must be produced and sold to break even.
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Question b:
The dollar amount is [tex]R(400)[/tex].
[tex]R(400) = 5(400) = 200[/tex]
The dollar amount coming in and going out is $400.
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Question c:
Profit is revenue subtracted by cost, thus:
[tex]P(x) = R(x) - C(x)[/tex]
[tex]P(x) = 5x - (800 + 3x)[/tex]
[tex]P(x) = 5x - 800 - 3x[/tex]
[tex]P(x) = 2x - 800[/tex]
The profit function is [tex]P(x) = 2x - 800[/tex]
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Question d:
The profit earned is P(520), thus:
[tex]P(520) = 2(520) - 800 = 240[/tex]
Kimmie will earn a profit of $240.
A similar problem is given at https://brainly.com/question/24373628