You are considering opening a small copy shop. It costs $5000 to rent a copier for a year, and it costs $0.03 per copy to operate the copier. Other fixed cost of running the store will amount to $400 per month. You plan to charge an average of $0.10 per copy, and the store will be open 12 months per year.
Define “Q” as the quantity (number of copies) required next year. Define TC(Q) as the total cost to make Q copies. Define TR(Q) as the total revenue.
1. Write the algebraic equations for TC(Q) and TR(Q).
2. Define TP(Q) as the net profit from selling Q copies, that is, TR(Q) – TC(Q). Write the algebraic equation for TP(Q).