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Problem 1: A firm is considering a new product. The accounting department estimates that the total cost, C(x), of producing x units will be C(x) = 50x + 6630. The sales department estimates that the revenue, R(x), from selling x units will be R(x) = 60x, but that no more than 881 units can be sold at that price. Find and interpret (R - C)(881).
Select one:
a. $2180 profit, income exceeds cost It is worth it to develop productb. $1544 profit, income exceeds cost It is worth it to develop productc. -$2180 loss, cost exceeds income It is not worth it to develop productd. $103,540 profit, income exceeds cost It is worth it to develop product
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