Revenue Function Of A Company

Finding the quadratic function.

Revenue function of a company. Revenue is the value of all sales of goods and services recognized by a company in a period. Suppose x denotes the number of units a company plan to produce or sell usaually a revenue function r x is set up as follows. If one type of product is being sold at one price the revenue function is simply. Revenue function for company a r x 9 8x cost function for company a c x 2625 2 3x profit function for company a π x 7 5x 2625.

From an accounting perspective revenue typically consists of product and service sales on account or where the customer paid in cash. Calculating the revenue function. R revenue p price per unit x number of units sold. It is the top line or gross income figure from which costs are subt.

Sometimes the price per unit is a function x say p x it is often called a demand function too because when a. Then you will need to use the formula for the revenue r x p x is the number of items sold and p is the price of one item. For instance if a lemonade stand sold x glasses of lemonade at 50 cents each the revenue function. Since profit is the difference between revenue and cost the profit functions the revenue function minus the cost function.

The profit or loss is determined by taking. Revenue is the amount of money that a company actually receives during a specific period. R x price per unit number of units produced or sold. In symbols π r c p q f v q.

However if the price is 70 dollars the demand is 5000. C 40 000 0 3 q where c is the total cost. R p x. Revenue also referred to as sales is the amount of money a company brings in or earns before any expenses are taken out.

After some research a company found out that if the price of a product is 50 dollars the demand is 6000. The equation for the cost function is. Note we are measuring economic cost not accounting cost.