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BRKEVNWK Linear.14A
3/17/2009
Professor
Polenzani
COST/REVENUE/PROFIT/BREAKEVEN WORKSHEET
A.
Fill in the cost and revenue functions with the given "x" values:
X = Units
C(x) = 20X + 1800
R(x) = 80X
0
10
11
30
100
B.
Fixed Cost:
The fixed cost is the value of the cost function
when X is zero.
For this problem, the fixed cost is $
.
This is the cost to produce zero units.
..these might be considered
the "startup" expenses.
..initial equipment, license fees, security
deposit.
The fixed cost is also the yintercept of the function.
C.
Marginal Cost per unit/Variable Cost per unit
:
C(11) =
C(10) =
C(11)

C(10)
=
.
This value is called the marginal cost per unit.
Check an Econ
or Accounting Book to find the definition of marginal cost:
The marginal cost is also the slope of the function.
D.
The yintercept of the revenue function is
.
The slope of the revenue function is
.
This represents the
price per unit or the selling price of each item.
This value is also
called the
marginal revenue.
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