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Answer to Question #72047 in Other Economics for elvia

Question #72047
Super Strength Inc. has found that the relationship between their sales and their net profit can be described by a polynomial function G(x) in which x is their sales (in thousands of dollars) and G(x) is their net profit (in thousands of dollars). What would be an appropriate domain for this function?
Expert's answer
So, net profit calculate next general formula:

Net profit = Total Revenue – Total Expenses

And would be an appropriate next domain:

G(x)=x-(Cpr+Mexp+Cexp+Co+T), where x - sales, Cpr – cost price,
Mexp – management expenses, Cexp – commercial expenses, Co – other expenses, T – taxes.

All expenses are allocated to a separate coefficient K.


So, domain for this function will have the following form: G(x)=x-K

The answer of this question is G(x)=x-K. Net profit is directly proportional to sales.

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