Profit Calculation for a Company Selling Pens

What is the profit made by the company when selling 1000 pens?

A) 3500 B) 9000 C) 13500 D) -3500 E) -9000

The profit, P, made by the company when selling 1000 pens is $3500.

When analyzing the profit made by a company, it's essential to consider both the revenue and cost factors. In this case, the company sells each pen for $9, with a revenue function of R = 9x, where x represents the number of pens sold. On the other hand, the cost to make the pens is $1 each, with a one-time start-up cost of $4500, represented by C = 1x + 4500.

Given that the company sells 1000 pens, the revenue can be calculated as $9000 (R = 9 * 1000), while the cost amounts to $5500 (C = 1 * 1000 + 4500). By subtracting the cost from the revenue, we find that the company's profit is $3500 (P = $9000 - $5500).

Understanding the components of profit calculation, including revenue and cost, is crucial for businesses to assess their financial performance accurately. By optimizing these factors, companies can enhance their profitability and long-term sustainability in the market.