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

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) = 95x + 3720. The sales department estimates that the revenue, R(x) , from selling x units will be R(x) = 105x, but that no more than 987 units can be sold at that price. Find and interpret (R -C) (987) .

A) -$6150 loss, cost exceeds income
B) $6150 profit, income exceeds cost It is not worth it to develop product. It is worth it to develop product.
C) $201,120 profit, income exceeds cost
D) $1359 profit, income exceeds cost It is worth it to develop product. It is worth it to develop product.

Correct Answer:

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