AAA Dance Shoes makes dancing shoes with leather soles. The shoes cost $29 to manufacturer. The fixed cost for the product line is $45,000. The company has determined their demand function to be q = -200p + 30,000, where p is the price for each pair of shoes. Write the expense and revenue functions in terms of price.
What will be an ideal response?
E = -5,800p + 915,000; R = -200p + 30,000p
E = 29q + 45,000
E = 29(-200p + 30,000) + 45,000
E = -5,800p + 915,000
R = pq = p(-200p + 30,000)
R = -200p + 30,000p
Mathematics
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