Solve the Problem. -A Firm Is Considering a New Product. the Accounting Department

question 42

Multiple Choice

Solve the problem.
-A firm is considering a new product. The accounting department estimates that the total cost, C(x) , of producing x units will be C(x) = 50x + 9010. The sales department estimates that the revenue, R(x) , from selling x units will be R(x) = 60x, but that no more than 488 units can be sold at that price. Find and interpret (R -C) (488) .

• A) -$4130 loss, cost exceeds income
• B) $1389 profit, income exceeds cost It's not worth it to develop product. It is worth it to develop product.
• C) $62,690 profit, income exceeds cost
• D) $4130 profit, income exceeds cost It is worth it to develop product. It is worth it to develop product.

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic.

Logical

Relating to or involving clear, sound reasoning.

Personality

The characteristic set of behaviors, cognitions, and emotional patterns that evolve from biological and environmental factors.

Rationality

The characteristic of adhering to or being aligned with logic or reasoning.