What is the average profit on producing and selling 40 items per day

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SUMMARY

The discussion centers on calculating the average profit from producing and selling 40 items per day, given the average cost function AC(x) = (100x + 2)/x and the average revenue function AR(x) = (100x + 3)/x. The average profit is derived from the difference between average revenue and average cost. Additionally, participants inquire about the sales volume required to achieve an average daily profit of $80, emphasizing the importance of correctly interpreting the cost and revenue functions.

PREREQUISITES
  • Understanding of average cost and average revenue functions
  • Basic knowledge of profit calculation in business
  • Familiarity with algebraic manipulation of equations
  • Concept of daily sales volume and its impact on profitability
NEXT STEPS
  • Calculate average profit using AC(x) and AR(x) for different values of x
  • Determine the sales volume needed to achieve a specific profit target
  • Explore the implications of fixed vs. variable costs on profitability
  • Research methods for optimizing pricing strategies to enhance revenue
USEFUL FOR

Entrepreneurs, business analysts, and anyone involved in financial planning or cost management who seeks to understand profit calculations and revenue optimization strategies.

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business has an average cost of AC(x)= 100x+2x/x and its average revene per day is AR(x)= 100x+3/x

what is the average profit on producing and selling 40 items per day

how many must we sell to get an average daily of $80?
 
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fxacx said:
business has an average cost of AC(x)= 100x+2x/x and its average revene per day is AR(x)= 100x+3/x

what is the average profit on producing and selling 40 items per day

how many must we sell to get an average daily of $80?
Please go back, reread the problem, and copy it correctly! I feel sure the average cost is NOT "
100x+2x/x= 100x+ 2". I might guess (100x+ 2x)/x but that is just 102. My best guess is that you meant "AC(x)= (100x+ 2)/x and that AR(x)=(100x+ 3)/x, NOT "100x+ 3/x".

Now, do you know what "revenue" and "cost" mean and how to find profit from them?​
 
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