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Math  /  Algebra

QuestionIn a company the price per unit is \500.Ifthefixedcostsare500. If the fixed costs are \21000 21000, and the cos of producing 6 units is \$22200 Find cost, revenue, profit.

Studdy Solution

STEP 1

1. The price per unit is 500.<br/>2.Fixedcostsare500.<br />2. Fixed costs are 21,000.
3. The cost of producing 6 units is $22,200.
4. We need to find the cost, revenue, and profit for producing and selling 6 units.

STEP 2

1. Determine the variable cost per unit.
2. Calculate the total cost for producing 6 units.
3. Calculate the revenue from selling 6 units.
4. Calculate the profit from selling 6 units.

STEP 3

Determine the variable cost per unit.
The total cost of producing 6 units is given as $22,200, which includes both fixed and variable costs. We can find the total variable cost by subtracting the fixed costs from the total cost:
Total Variable Cost=Total Cost−Fixed Costs \text{Total Variable Cost} = \text{Total Cost} - \text{Fixed Costs} Total Variable Cost=22,200−21,000 \text{Total Variable Cost} = 22,200 - 21,000 Total Variable Cost=1,200 \text{Total Variable Cost} = 1,200
Now, divide the total variable cost by the number of units to find the variable cost per unit:
Variable Cost per Unit=1,2006 \text{Variable Cost per Unit} = \frac{1,200}{6} Variable Cost per Unit=200 \text{Variable Cost per Unit} = 200

STEP 4

Calculate the total cost for producing 6 units.
The total cost is the sum of fixed costs and the total variable cost for 6 units:
Total Cost=Fixed Costs+Total Variable Cost \text{Total Cost} = \text{Fixed Costs} + \text{Total Variable Cost} Total Cost=21,000+1,200 \text{Total Cost} = 21,000 + 1,200 Total Cost=22,200 \text{Total Cost} = 22,200

STEP 5

Calculate the revenue from selling 6 units.
Revenue is calculated by multiplying the price per unit by the number of units sold:
Revenue=Price per Unit×Number of Units \text{Revenue} = \text{Price per Unit} \times \text{Number of Units} Revenue=500×6 \text{Revenue} = 500 \times 6 Revenue=3,000 \text{Revenue} = 3,000

STEP 6

Calculate the profit from selling 6 units.
Profit is calculated by subtracting the total cost from the revenue:
Profit=Revenue−Total Cost \text{Profit} = \text{Revenue} - \text{Total Cost} Profit=3,000−22,200 \text{Profit} = 3,000 - 22,200 Profit=−19,200 \text{Profit} = -19,200
The profit (or loss, in this case) from selling 6 units is:
−19,200 \boxed{-19,200}

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