1. You are hired as a business consultant of a firm that manufactures radios and sells them for Php 200.00 each. The fixed costs incurred in the production and sale of the radios is Php 200,000.00 plus a variable cost of Php 50.00 for each radio produced and sold. Let x be the number of units produced and sold. You are tasked to determine the following: a. The total cost for a business which is the sum of the fixed costs and the variable cost. Write the total cost C as a function of the number of units produced. b. Write the review R as a function of the number of units sold. c. Write the profit P as a function of the number of units sold, where P = R – C d. How much profit will the firm gets if the number of the radios sold is 500 units? Assume that units sold and produced are equal.

1. You are hired as a business consultant of a firm that manufactures radios and sells them for Php 200.00 each. The fixed costs incurred in the production and sale of the radios is Php 200,000.00 plus a variable cost of Php 50.00 for each radio produced and sold. Let x be the number of units produced and sold. You are tasked to determine the following: a. The total cost for a business which is the sum of the fixed costs and the variable cost. Write the total cost C as a function of the number of units produced. b. Write the review R as a function of the number of units sold. c. Write the profit P as a function of the number of units sold, where P = R – C d. How much profit will the firm gets if the number of the radios sold is 500 units? Assume that units sold and produced are equal.

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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