A company produces a commodity with ₹24000 fixed cost. The variable cost is estimated to be 25% of the total revenue recovered on selling the product at a rate of ₹8 per unit. Find the Revenue function.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → $R(x)=8x$
Let x units of the product be produced and sold. As the selling price of one unit is ₹8, so the total revenue on selling x units = ₹8x.
Revenue function (in ₹) = $R(x) = 8x$.