Questions: MGMT 635 QUIZ #1 Aubrey Carballo NAME 1. Boxes of pens can be made for 1.80 per box. Fixed costs that do not depend on how many boxes are produced total 6,000 per production period. Each box of pens will eventually sell for 3.00 each. Use this information to determine the following: A. Develop the linear equation for determining total Costs. C=1.80x+6000 B. Develop the linear equation for determining total Revenues. C. Develop the linear equation for determining total Profits. P=R-C P=0.03x-(1.80x+6000) P=0.03X-1.80x-6000

MGMT 635
QUIZ #1
Aubrey Carballo
NAME
1. Boxes of pens can be made for 1.80 per box. Fixed costs that do not depend on how many boxes are produced total 6,000 per production period. Each box of pens will eventually sell for 3.00 each. Use this information to determine the following:
A. Develop the linear equation for determining total Costs.
C=1.80x+6000
B. Develop the linear equation for determining total Revenues.
C. Develop the linear equation for determining total Profits.
P=R-C
P=0.03x-(1.80x+6000)
P=0.03X-1.80x-6000

Transcript text: MGMT 635 QUIZ #1 Aubrey Carballo NAME 1. Boxes of pens can be made for $1.80 per box. Fixed costs that do not depend on how many boxes are produced total $6,000 per production period. Each box of pens will eventually sell for $3.00 each. Use this information to determine the following: A. Develop the linear equation for determining total Costs. \[ C=1.80x+6000 \] B. Develop the linear equation for determining total Revenues. C. Develop the linear equation for determining total Profits. \[ \begin{array}{l} P=R-C \\ P=.03x-(1.80x+6000) \\ P=.03X-1.80x-6000 \end{array} \]

Solution

Solution Steps

Step 1: Develop the linear equation for determining total Costs

The cost per box of pens is $1.80, and the fixed costs are $6,000. The total cost (C) can be expressed as: \[ C = 1.80x + 6000 \] where $ x $ is the number of boxes produced.

Step 2: Develop the linear equation for determining total Revenues

Each box of pens sells for $3.00. The total revenue (R) can be expressed as: \[ R = 3.00x \] where $ x $ is the number of boxes sold.

Step 3: Develop the linear equation for determining total Profits

Profit (P) is the difference between total revenue and total costs. Using the equations from Steps 1 and 2: \[ P = R - C \] \[ P = 3.00x - (1.80x + 6000) \] Simplify the equation: \[ P = 3.00x - 1.80x - 6000 \] \[ P = 1.20x - 6000 \]