Wally's T-shirt company estimates the demand function for the Red sox world series t-shirt to be:

q=-4p+200

where q is the number of shirts you can sell in one week if you charge sx per shirt. The Student Council charges you $400 per week for use of their facilities, and the T-shirts cost you $5 each. Find the weekly cost as a function of the unit price x. Hence, find the weekly profit as a function of x and determine the unit price you should charge to obtain the largest possible weekly profit. What is the largest possible weekly profit?

(i) The cost function is C(q) =5q + 400

(ii) The profit function =for weekly profit

(iii)  the maximum profit is $243.75

Step-by-step explanation:

(i) the cost function will be C(q) = FC(q) + V(q)

fixed costs FC(q) as a function of quantiyy and variable costs VC(q) we already know that the fixed cost is the $400 per week from charges to use facilities then Variable costs is $5 times the quantity of t shirts sold per week.

so C(q) = $400 + 5q

(ii) The profit function will be found by multiplying quantity demanded with the price at which that quantity is demanded at so we have a demand function q= -4p + 200 then we make the price the subject of the formula

p = 200/4 - q/4 we divided both sides by 4 after transposing -4p

then we get p= 50 - q/4 which is the price of the quantity demanded then we multiply this price by q

thereafter we get pq = 50q - q^2 /4

which is our profit function because p x q is revenue/ profit ;