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 + 5630.The sales department estimates that the revenue, R(x), from selling x units will be R(x) = 60x,but that no more than 942 units can be sold at that price. Find and interpret (R - C)(942).
A. $1505 profit, income exceeds cost
It is worth it to develop product.
B. $109,250 profit, income exceeds cost
It is worth it to develop product.
C. $3790 profit, income exceeds cost
It is worth it to develop product.
D. -$3790 loss, cost exceeds income
It is not worth it to develop product.
Answer: C
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