John Jones has decided to go into the business of producing and selling boats. In order to begin the venture, he must invest $10 million in

Question

John Jones has decided to go into the business of producing and selling boats. In order to begin the venture, he must invest $10 million in a boat production plant. The cost to produce each boat will be $7000, and the selling price will be $20000. Accounting for the cost of the production plant, create an expression which represents the profit, in dollars, that John will realize when x boats are produced and sold.

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    2021-09-10T19:48:24+00:00

    Answer:

    P(x) = 13,000x – 10,000,000

    Explanation:

    John’s cost is the sum of fixed costs ($10,000,000) and variable costs ($7000·x).

    John’s revenue is the amount he gets from selling boats ($20,000·x).

    The profit John realizes is the difference between revenue and cost:

    … P(x) = revenue – cost

    … P(x) = 20,000x -(10,000,000 +7000x) . . . . . use the expressions for each

    P(x) = 13,000x -10,000,000 . . . . . . . . . . . . . simplify

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