Problem

A company makes pens. They sell each pen for $\$ 10$. Their revenue is represented by $R=10 x$. The cost to make the pens is $\$ 2$ each with a one time start up cost of $\$ 6500$. Their cost is represented by $C=2 x+6500$. a) Find the profit, $P,(P=R-C)$ when the company sells 1000 pens. $-1500$ 10000 1500 $-10000$ 16500

Solution

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, \(R = 10 \times 1000 = 10000\).

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, \(C = 2 \times 1000 + 6500 = 8500\).

Step 3 :The profit is calculated by subtracting the cost from the revenue. So, \(P = R - C = 10000 - 8500 = 1500\).

Step 4 :\(\boxed{1500}\) is the profit when the company sells 1000 pens.

From Solvely APP
Source: https://solvelyapp.com/problems/tI6RvGUSbJ/

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