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BUSINESS CALC FORMULAS - CSUSM

BUSINESS CALC FORMULAS 2009r1-12e Jul 2010 James S Calculus for BUSINESS 12th ed. Barnett [reference pages] Cost: C = fixed cost + variable cost (C= 270 + .15x) [51] Price Demand: p(x) = 300 .50x [51] Revenue: R(x) = x[p(x)] => (x)( 300 .50x) = 300x .50x2 [51] Profit: P = Revenue (R) Cost (C) [51] Price-Demand (p): is usually given as some P(x) = ax + b However, sometimes you have to create P(x) from price information. P(x) can be calculated using point slope equation given: Price is $14 for 200 units sold. A decrease in price to $12 increases units sold to 300. )200300()1412( = = = =unitspricem p(x) = m(x x1) + p1 substitute the calculated m and one of the units (x1) and price (p1) p(x) =.

Marginal Profit: P’(x) = P(x) dx d solve for x at P’(x) = 0 [199] Marginal Average Cost: C ’(x) [199] Where P(x) and R(x) cross. In this case there are two intersect points. Generally we are only interested in the first one where we initially break even. BUSINESS CALC ...

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