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Mathematics, 26.01.2021 05:30 FireBlits8950

A company breaks even from the production and sale of a product if the total revenue equals total cost Suppose an electronics company is considering producing two types of smartphones . To produce smartphone A, the initial cost is $20,000 and each phone costs $150 to produce. The company will sell smartphone A at $200. Let C(a) represent the total cost in dollars of producing a units of smartphone A. Let R(a) represent the total revenue , money the company takes in due to selling a units of smartphone A. The system of C() = =20,000+150a equations can be used to represent the situation for phone A. R(a) = 200a To produce smartphone Bthe initial cost is $44,000 and each phone costs $200 to produce. The company will sell smartphone B at $280. Let C(b) represent the total cost in dollars of producing b units of smartphone B and R(b) represent the total revenue from c) =44,000+200b selling b units of smartphone B. The system of equations can be R(b) = 280b used to represent the situation for phone B. Solve each system of equations and interpret the solutions. Then determine whether the company should invest in producing smartphone A or smartphone B. Justify your answer.

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