Functions: Cost, Revenue, and Profit
A biscuit factory has the following fixed and variable manufacturing costs:
- daily fixed costs of RM500.
- costs 80 cents to produce each bag of biscuits.
In addition, the revenue per unit sold is:
- A bag of biscuits sells for RM 1.80.
Given that x represents the number of bags of biscuits sold,
(i) Cost function, C(x)
(ii) Revenue function, R(x)
(iii) Profit function, P(x)
(b) Calculate the daily profit if the factory sells 1200 bags of biscuits daily.