Since production on that day is above 35 tons
the company will earn revenue in two ways.
First it will sell 35 tons at 10,000 Euros per ton.
Second, it will sell the remaining 2 tons at a discount price
of 9,000 euros per ton.
It will incur a production cost of 9500 Euros per ton.
So let's count.
The regular revenue on that day will be 350,000,
the discount revenue on that day will be 180,00 Euros,
the production cost will amount to 351,500 Euros.
So the total profit on that day
will be 16,500 Euros.
Now let's put together both cases, with production
being below versus at or above 35 tons, using algebra.
If P<35, three components contribute to the profit.
Now let's put both cases together, with production
being below versus at or above 35 tons, using algebra.
If P<35, three components contribute to the profit.