Question
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A certain factory produces and sells computers per month. It costs
dollars to produce a single computer, and the factory sells each computer
for dollars. Their monthly net profit is 10,000 dollars.
Write an equation that relates , and .

Ask by Estrada Fowler. in the United States
Jan 20,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

The equation relating , , and is:

Solution

To determine the relationship between the number of computers produced and sold ( ), the cost to produce each computer ( ), and the selling price of each computer ( ), we can analyze the factory’s monthly net profit.
  1. Total Revenue: This is the amount of money the factory earns from selling the computers.
  2. Total Cost: This is the amount of money the factory spends to produce the computers.
  3. Net Profit: This is the difference between total revenue and total cost, which is given as $10,000.
Simplifying the equation:
Final Equation:
Alternatively, it can be written as:
Either form effectively relates , , and based on the given information.
Answer:
The net profit is Cy minus Cx and equals 10 000, so
C y − C x = 10,000

Answered by UpStudy AI and reviewed by a Professional Tutor

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Explain
Simplify this solution

Extra Insights

The factory’s net profit can be expressed with the equation:
Where revenue from selling computers is and the cost to produce computers is . Therefore, we can write the equation as:
This simplifies to:
This equation illustrates how the number of computers produced and sold interacts with production costs and sales price to yield a specific profit.
To make this equation even more relevant, consider that companies often use similar formulations when assessing their pricing strategies. Pricing just a bit above the production cost, while maintaining competitiveness, can significantly increase profit margins. Businesses constantly analyze these variables to adapt to market changes, helping them stay afloat and in profit territory!

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