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kkurt
7 days ago
8

A small business makes cookies and sells them at the farmer's market. The fixed monthly cost for use of a Health Department–appr

oved kitchen and rental space at the farmer's market is $790. The cost of labor, taxes, and ingredients for the cookies amounts to $0.24 per cookie, and the cookies sell for $6.00 per dozen. (See Example 7) Write a linear cost function representing the cost C(x) to produce x dozen cookies per month. Write a linear revenue function representing the revenue R(x) for selling x dozen cookies. Write a linear profit function representing the profit for producing and selling x dozen cookies in a month. Determine the number of cookies (in dozens) that must be produced and sold for a monthly profit. If 150 dozen cookies are sold in a given month, how much money will the business make or lose?
Mathematics
1 answer:
Inessa [8.9K]7 days ago
6 0
Cost function: Revenue function: Profit function: Dozens required for a specific profit P. If 150 dozen cookies are sold, the profit is negative, resulting in a loss of $322. Step-by-step explanation: We can enumerate the costs as follows: - Fixed monthly cost of $790. - Variable costs of $0.24 per cookie, equating to (12*0.24) = $2.88 per dozen. We can then construct the cost function C(x) considering C(x) represents the monthly cost and x denotes the number of dozens produced each month. Revenue can be calculated as the price ($6 per dozen) multiplied by the quantity sold, x. The profit is calculated by subtracting the total cost C(x) from the revenue R(x). The required number of dozens for a monthly profit can be derived from the preceding equation for P(x). To achieve a monthly profit P, a certain number of dozens must be sold. When selling 150 dozen cookies, the profit recorded is negative, indicating a loss of $322.
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