Question

What I Can Do You wanted to join a booth fair, and you are aiming to get a profit that is twice as booth that you will set up and the product that you will sell. You may use the sample plan below: FINANCIAL PLAN Product: Description of product: Goal: Capital: P15,000.00 Fixed Cost (Labor, Machineries, Expenses for the booth etc): Variable Cost (Materials, Ingredients, etc): Profit function: Prove that profit function will yield an amount that is twice the capital
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Answer 1

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Answer 2

Given: Capital Rs.15,000 is given.

To Prove: Profit function will yield twice the capital.

Assumption: We have assumed Fixed Cost Rs.7000 and Variable Cost Rs.8000

Explanation:

You are going to join a booth fair with the hope that you can make twice as much profit as your capital. Based on the given details, here's a sample plan:-

Product- Natural skincare for women

Description- Organic skincare products that are designed to brighten and moisturize your skin.

Goal- The objective is to maintain the skin and body of women as they age.

Capital- 15000

Fixed Cost- 7000 (Assumed)

Variable Cost- 8000 (Assumed)

Profit function-   $300(a)=450a-150a$

Show that the profit function will yield two times the capital.

This profit function $300(y)=450y-150y$ will help us to get two times profit as your capital.

Profit function - Revenue Function- Cost Function

                                                  $r(y)- c(y)$

                                          $300(y)=450y-150y$

where,

y = no. of units manufactured and sold.

p = profit sold per unit

Cost function = fixed cost + (variable cost) × (amount of unit sold)

Assumption:

                                  $C(y)=7000+(80*100)$

                                      [tex]C(y)=7000+8000 [/tex]

                                           $C(y)=15000$

Revenue function = price per revenue sold × no. of sold units

                                        $R(y) = 450 * 100$

                                           $R(y) = 45000$

∴ Profit function = 45000 – 15000

Profit function = 30000

Therefore, we can conclude that the profit function is revenue function r(y) - cost function c(y).

Hence the formula:

Profit function = revenue function r(y) - cost function c(y)  

Hence Proved