.s) Suppose that a company has fixed costs of 300300 dollars and variable costs of 0.75x+14200.75x+1420 dollars per unit, where x is the number of units produced. Suppose further that the selling price of its product is 1550-0.3x1550-0.3x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the nearest one. (a) Find the break-even points. The larger number of units at which break- even occurs is , with corresponding revenue dollars. and The smaller number of units at which break- even occurs is , with corresponding revenue dollars. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)

.s) Suppose that a company has fixed costs of 300300 dollars and variable costs of 0.75x+14200.75x+1420 dollars per unit, where x is the number of units produced. Suppose further that the selling price of its product is 1550-0.3x1550-0.3x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the nearest one. (a) Find the break-even points. The larger number of units at which break- even occurs is , with corresponding revenue dollars. and The smaller number of units at which break- even occurs is , with corresponding revenue dollars. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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