QUESTION 2 Assume that the linear cost and revenue models apply. An item costs $2 to make, If fixed costs are $6000 and profits are $7000 when 400 items are made and sold, find the company's profit when 1000 items are made and sold.

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A: Solving

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A: The line passes through the point (6,7) that cuts off the least area from the first quadrant.

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A: In this question, We will use the formula of the length of an arc of the parametrized curve.

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A: profit = revenue - cost here  revenue for next 5 year R(x) = 100e0.05x R(5) = 100e0.05(5) R(5) =…