Answer :
We created a math problem involving revenue and cost expressions, found the profit function, and calculated the profit for X = 2, resulting in a profit of -2000.
Problem:
You are running a business where the revenue and cost are given by the following expressions:
- Revenue: 25000 - 8000X
- Cost: 7000 + 2000X
where X is the number of units produced and sold (in thousands).
Determine the profit function and calculate the profit when X = 2.
Solution:
- The profit function is given by:
Profit = Revenue - Cost - Substitute the expressions for Revenue and Cost:
Profit = (25000 - 8000X) - (7000 + 2000X)
Profit = 25000 - 8000X - 7000 - 2000X
= 18000 - 10000X - Now, substitute X = 2:
Profit = 18000 - 10000(2)
Profit = 18000 - 20000
= -2000 - Therefore, when X = 2, the profit is -2000.
