A company makes pens. They sell each pen for
Their revenue is represented by
The cost to make the pens is
Their cost is represented by
a) Find the profit,
10000
1500
16500
Step 1 :The revenue of the company when selling 1000 pens is calculated by multiplying the selling price of each pen ($10) by the number of pens sold (1000). So,
Step 2 :The cost of producing 1000 pens is calculated by multiplying the cost of producing each pen ($2) by the number of pens produced (1000) and adding the one-time start-up cost ($6500). So,
Step 3 :The profit is calculated by subtracting the cost from the revenue. So,
Step 4 :