Question

A company sells its product at the rate of Rs $6$ per unit . The variable costs are estimated to run 25% of the total revenue received. If the fixed costs for the product are Rs $4500$.
Find the total revenue function.

• A. $6x$
• B. $4x$
• C. $4500x$
• D. $6x+4$

Answer 1

The correct option is A $6x$

$\Rightarrow$ If x is the number of units of certain product sold at a rate of $Rs.p$ per unit, then the amount derived from the sale of $x$ units of a product is the total revenue.

$\Rightarrow$ Here, price per unit is $Rs.6$, so $p=6$

$\Rightarrow$ $TotalrevenueR\left(x\right)=p.x$

$\Rightarrow$ $TotalrevenueR\left(x\right)=6x$