Question

A regional candy factory sells a guava roll at a price of $48, the monthly fixed costs amount to $125,000 and the variable cost for making a guava roll is $28. Determine: a) The equation of the total income from the production of guava rolls.

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Frederik

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The total income from the production of guava rolls can be represented by the equation that calculates the total revenue generated by selling a certain quantity of guava rolls.
The total income (revenue) from selling guava rolls can be expressed as the product of the selling price per unit and the quantity of guava rolls sold.
Let \( x \) be the quantity of guava rolls sold.
Given:
- Selling price per guava roll = $48
The equation for the total income (\( I \)) from selling \( x \) guava rolls is:
\[ I = \text{Selling price per guava roll} \times \text{Quantity of guava rolls sold} \]
\[ I = 48x \]
This equation represents the total income (revenue) generated by selling a certain quantity \( x \) of guava rolls at a price of $48 per guava roll.

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