ORANGE-U-HAPPY

Orange-U-Happy is an orange-scented cleaning product that is manufactured in disposable cloth pads. Each box of 100 pads costs $5 to manufacture. The fixed costs for range-U-Happy are $40,000. The research development group of the company has determined the demand function to be q = –500p + 20,000, where p is the price for each box.

Part A
Create expense and revenue functions to model the business in terms of the price, p.






Part B
What is the breakeven point for Orange-U-Happy’s disposable cloth pads? Explain how you determined your answer.






Part C
Create the profit function for Orange-U-Happy in terms of the price, p.






Part D
Determine the maximum profit and the price at which the maximum profit occurs for the disposable cloth pads. Explain how you determined your answer.