## A company sells doughnuts. They incur a fixed cost of \$23000 for rent, insurance, and other expenses. It costs \$0.1 to produce each doughnut

Question

A company sells doughnuts. They incur a fixed cost of \$23000 for rent, insurance, and other expenses. It costs \$0.1 to produce each doughnut. The company sells each doughnut for \$0.2.
Part A. Construct a linear model that describes their total costs, C, as a function of the number of doughnuts, x, they produce.

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3 days 2021-10-12T08:23:35+00:00 1 Answer 0

C(x) = 0.1x+23000

Step-by-step explanation:

Given that a company sells doughnuts. They incur a fixed cost of \$23000 for rent, insurance, and other expenses. It costs \$0.1 to produce each doughnut. The company sells each doughnut for \$0.2.

Let X be the no of units produced

Then we have variable cost = 0.1x

Fixed cost = 23000 (irrespective of value of x)

Total cost where C represents the total cost and x no of units produced.

Revenue function would be assuming all doughnuts are sold.

Profit function would be 