BRKEVNWK_Linear.14A

# BRKEVNWK_Linear.14A - COST/REVENUE/PROFIT/BREAKEVEN...

This preview shows page 1. Sign up to view the full content.

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 "start-up" expenses. ..initial equipment, license fees, security deposit. The fixed cost is also the y-intercept 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 y-intercept 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.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online