Product X is sold for $500 per unit. The total cost of production per year, including capital recovery and a return, is given by the expression TC = 0.04n3 − 700n + 50, 000 where n is the number of units sold. If TC represents the total of all fixed and variable costs, determine the following: a. The value of n that maximizes profit. b. The maximum profit for a year. c. The fixed cost per year.

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.