Jeremy and Justine work for a company that receives $45 for each unit of output sold. The company has a variable cost of $25 per item and a fixed cost of $1600.
Based on this information, Jeremy and Justine make some projections about potential profit.
Jeremy states that for every 100 units of output sold, the company will make $3,600 in profit.
Justine states that for every 300 units of output sold, the company will make $4,400 in profit.
Part A
Determine a function that models the profit for the company based upon the conditions for revenue and expense.
Part B
Are the claims about profit that Jeremy and Justine made true? Explain why Jeremy and Justine are each correct or incorrect and justify your reasoning.