8. (a) At a health food manufacturing plant, it costs $20000 to produce 1500 cases of tofu, and $26000 to produce 2000 cases of tofu. Find this manufacturer's linear cost function based on this information. (Let r be the number of cases of tofu.) (b) Each case of tofu is then sold for $18. Find this manufacturer's revenue function. (c) Find this manufacturer's profit function and simplify it.
Q: A local company is planning to manufacture and market a four-slice toaster. For this toaster, the…
A: Weekly Demand = 300 toasters @ $25 each and Weekly Demand = 400 toasters @ $20 each Note:- Since…
Q: The profit of a company, in dollars, is the difference between the company's revenue and cost. The…
A: Given: C(x)=2500+60xR(x)=800x-x2
Q: A recent engineering was given the job of determining the best production rate for a new type of…
A: Following below is the formula used to determine the profit for a firm; Profit = Selling price -…
Q: 6. The cost that vary accordingly to the volume of output is _____________. a. Fixed cost b. Both…
A: The aggregate cost that is incurred in the process of production on a particular commodity is called…
Q: Develop the nonlinear profit function for the tire company and determine the optimal price, the…
A: We first find the Total Profit function = Total Revenue - Total Cost Total Revenue = Volume x Price…
Q: 22) Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 14.The demand function for a new product is p(x) = - 2x + 7 , where p is the selling price of the…
A: Profit is the difference between total revenue and total cost. Total revenue is the product of price…
Q: Problem Four: A company sells soda cans estimates that the cost of producing x cans is given by C(x)…
A: When one additional or marginal unit is generated and sold, a firm or person earns a marginal…
Q: 1. The Abner Corporation, a retail seller of television sets, wants to determine how many television…
A: In Economics, the average variable cost is the variable cost per unit. Average variable cost is…
Q: C) Video Productions sells DVD for $60. The variable cost per DVD is $36, and the fixed costs per…
A: Given:Price of each DVD=$60Variabl cost=$36Fixed cost=$120,000
Q: 51 The marginal revenue function for a company's product is 50 f'(x) = 10- x+ x?, (2,-7) MR = 40,000…
A: Marginal revenue is the additional revenue that a seller would earn when the individual sold one…
Q: The revenue for a product is R(x) = −0.004x^2 + 21x − 6200 and the cost is C(x) = 0.02x + 38, for x…
A: Profit maximization is one of the key goals of firms operating in a market. Profit is the difference…
Q: A factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both…
A: Costs are the expenses that a firm incurs in the form of purchase of inputs to produce goods and…
Q: 13. A company finds that it can sell out a certain product that it produces, at the rate of Tk. 2…
A: Total profit is the difference between the total production cost and the total revenues received by…
Q: The same firm produces 500 lawnmowers per week. It hires 20 full-time workers (40 hours/week) at an…
A: Given that, Units produced = 500 Here , hiring workers and raw materials are variable cost . Raw…
Q: 6. A company produces and sells a product and fixed costs of the company are 8500000 Baisa and…
A: 1000 Baisa = 1 Omani Rial (RO) So, 8500000 Baisa = RO.85000 Given, total fixed cost = RO. 8500 Total…
Q: A firm estimates its production function as Q = -2.4 + 20*L -5*L2 + 30*K -1.00*K2 + 15*F 3*F?. Total…
A: Profit maximizing firm will maximize profit: Profit = P*Q - TC Profit = 200(-2.4+20*L - 0.5*L2 +…
Q: Question 12 Table: Variable Costs for Lawns Quantity of lawns Variable costs $0 10 100 20 300 30 500…
A: Total cost of 20th unit =$35*20=$700 Fixed cost of 20th unit =Total cost - variable cost…
Q: firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2.…
A:
Q: 1. Assuming that the company sells all that it produces, what is the profit function? P(z) = Hint:…
A: Note: The question has more than three sub parts. We shall solve the first three sub parts at a…
Q: 1th - Which of the following costs does not include wages? a) Constant B)…
A: Constant costs or fixed costs are the costs when no output is produced. Output can only be produced…
Q: . The Great Outdoors Tent can be purchased from a wholesaler for $58 less discounts of 30% and 7%.…
A: Price: It refers to the cost of goods and services. The less the price of the goods and services the…
Q: 7. An analyst has found that Tom's Transmissions Company cost function is: C(x) = 40,000 + 500x –…
A:
Q: Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per unit. If…
A: Given The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per unit. If demand…
Q: Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per 100 unit.…
A: Given Fixed cost = 1200. Variable cost = 2 per unit. Demand function: p = 100/√x. The company…
Q: 6. A company produces x units of product A and y units of product B (both in hundreds per month).…
A: We are given we can find partial derivative with respect to x
Q: 5. Consider the accompanying breakeven graph for an investment, answer the following questions. a)…
A: Since you have provided multiple subpart question, we will solve the first three subpart for you. If…
Q: 1. Use the high-low method to estimate the fixed and variable portion of overhead costs based on…
A: Total cost (TC) = F + vQ where F: Fixed cost, v: Overhead cost per hour & Q: Number of machine…
Q: A company handles an apartment building with 50 units. Experience has shown that if the rent for…
A: To maximize profit, the company needs to ensure that the marginal revenue of selling one more…
Q: 5. Outdoors Inc. produces handmade wooden kayaks. The owner, who is also the only employee, has…
A: Total Cost: C(x)=5.125x^2+2x+1500 Average Cost : AC(x)=TC(x)/x AC(x)=5.125x+2+1500/x Minimize AC(x):…
Q: 1) A manufacturer of kitche. Appliances is preparing to set the price on a new blender. Demand is…
A: Given: D= 2,800-4p C=4,700+5D
Q: Given the information that follows: Sales - 750,000, explicit costs 450,000, return you could have…
A: Hi, thanks for the question. Since you posted multiple questions, we will answer for first question.…
Q: Assume: A firm pays $500 for a unit of capital. This capital generates $500 of total revenue. The…
A: Explicit cost is fixed and variable costs of making a decision. Implicit cost is the opportunity…
Q: Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal…
A: Profit = $7,816 Units = 396
Q: 2) The cost price of a Saturn is $13 000. When the dealer sells each car for $25 000, he sells 21…
A: Profit for a function is the difference between the total revenue earned and the total cost…
Q: 5. Consider the accompanying breakeven graph for an investment, answer the following questions. a)…
A: Since you have posted multi subparts question. So as per answering guideline, we will solve first 3…
Q: A company makes solar panels. The company's revenue function, in dollars, is R(n) = 10n, where n is…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 2. As a general rule, when accountants calculate profit they account for explicit costs but usually…
A: There are broadly two kinds of profits. Accounting profit and Economic profit. Profit as we know is…
Q: 8. A commodity has price demand function p(x)= 11800 - .01x and each unit costs 1000 and the…
A: Demand Function P(x) = 11800 - 0.1x2 Each unit cost = 1000 overhead/Fixed Cost = 5000
Q: 1. A firm is said to be earning normal profit whenever: A. Accounting profit is zero. B. Economic…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 5. Given that P(x) is the profit function when x items are sold, the approximate additional profit…
A: Given the profit function = P(x) Additional profit or marginal profit = ?
Q: 2. The relationship between price and demand per month for a consumer product is p = 3500 -1.1D1S…
A: Here, demand curve is given as: P=3500-1.1D1.5 Fixed cost: $300 per month Variable cost: $4 per…
Q: The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per…
A: General profit function is given below.
Q: Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per 100 unit.…
A: Total cost = Fixed cost + Variable cost
Q: 3(a) The cost of manufacturing motor cycles (per day) is related to number to number of motor cycles…
A: Given Total cost in SAR: TC=x33-200x2-50000x ... (1) We have to find a cost-minimizing…
Q: %3D A company makes solar panels. The company's revenue function, in dollars, is R(n)=10n, where n…
A: We are going to answer these questions using maximization method and using Solver function in excel…
Q: 1. The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is…
A: Hi! thanks for the question but as per the guidelines, we answer up to three subparts. Kindly repost…
Q: 2. A company produces and sells a consumer product and is able to control the demand for the product…
A: The approximate relationship between price and demand is:-…
Step by step
Solved in 5 steps
- 14.The demand function for a new product is p(x) = - 2x + 7 , where p is the selling price of the product and x is the number sold in thousands. The cost function is C(x) = x + 2 . a) Determine an equation for the profit, in standard form and in function notation. b) How many units must be sold for the company to break even?A company makes solar panels. The company’s revenue function, in dollars, is R(n)=10n , where n is the number of panels produced. The cost function is C(n)=100(2)π/30 . R and C are shown on the graphbelow. a) Estimate from the graph i) the break-even points ii) the number of panels that should be produced for maximum profit b) Write the equation for the profit function P. c) Graph P. d) Use your graph of P to estimate the number of panels that give maximum profit. e) How would your answers for break-even points and maximum profit change if i) the number of dollars of revenue per panel is increased slightly? ii) the cost function is C(n)=100(2)π/35 changed to ? f) What does the number that was changed in part e) ii) represent?7. The demand and cost function for a company are estimated to be as follows: P = 100 - Q TC = 50 + 80Q -10Q2 + 0.6Q3 a. What price should the company charge if it wants to maximize its profit in the short run b. What price should it charge if it wants to maximize its revenue in the short run c. Suppose the company lacks confidence in the accuracy of cost estimates expressed in a cubic equation and simply wants to use a linear approximation. Suggest a linear representation of this cubic equation. What difference would it make on the recommended profit-maximizing and revenue-maximizing prices
- The Hickory Cabinet and Furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cost per chair is $40. Price is related to demand, according to the following linear equation: v = 400 - 1.2p Develop the nonlinear profit function for this company and determine the price that will maximize profit, the optimal volume, and the maximum profit per month.1. The amount of fixed factory costs applied to the product during the first 6 months under absorption costing is? A. Over-applied by $20,000. C. Under-applied by $40,000. B.Equal to the fixed costs incurred. D. Under-applied by $80,000. 2. Reported net income (or loss) for the first 6 months under absorption costing is? A. $160,000 B. $0 C. $40,000 D. $(40,000) 3. Reported net income (or loss) for the first 6 months under variable costing is? A. $180,000 B. $40,000 C. $0 D. $(180,000)1a) Suppose a firm’s TC = 50Q.75. What is Marginal Cost for the 100th unit of production? Use a spreadsheet or otherwise and incremental analysis (not calculus) to answer this question b) A firm estimates its production function as Q = 2.4 + 30*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2. Total cost is TC = $2.5*L + $2*K + $.75*F. The firm wishes to produce 500 units of output. Use Excel Solver or otherwise to find the cost minimizing amounts of L, K and F. What is the cost-minimizing amount of capital (K)? c) A firm’s production function is: Q = 20L -.5L2. The firm can sell all the output it wishes at $10 per unit. The wage rate for labor is PL=W=$20. a. How much labor should be hired to maximize profits? You can use either a spreadsheet, Solver (or calculus) to find the
- Suppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for production and sale of the coffee makers are $1,000$1,000 plus $13$13 for each coffee maker produced.a. Write the function for monthly total costs C(x)=C(x)= b. What is the fixed cost? c. What is the marginal cost? d. Interpret the marginal cost. Each additional coffee maker made decreases the cost by this many dollars. If the number of coffee makers increases by this amount, the cost increases by $1. Each additional coffee maker made yields this many dollars in cost. If the number of units made is increased by this amount, the cost decreases by $1. e. What is C(300)C(300) ? f. Interpret C(300)C(300) When this many coffee makers are produced the cost is $300300. For every additional coffee maker produced the cost increases by this much. This is the cost (in dollars) of producing 300 coffee makers. For each $1 increase in cost this many more coffee makers can…1. It costs $25,000 to build 30 refrigerators. It costs $30,000 to build 40 refrigerators. Assuming that the cost function is linear, find the cost function C(x) where x is the number of refrigerators built. If each refrigerator sells for $1500, find the revenue function, profit function, and break-even point.ABC Company is the manufacturer of a low-noise air-purification system. Its current capacity is 10,000 units/month, but ABC received orders totaling 9,000 units each month. Currently, ABC sells its system at a price of $200 per unit, its fixed cost is $500,000/month, and its variable cost is $100/unit. Note that currently, half of ABC’s variable cost is materials, and the other half is labor cost (wages for workers). ABC wants to consider cutting its price by 10% to stimulate demand. If ABC expands its capacity, it will have to lease additional manufacturing machines, each of which will cost $20,000/month to lease and can add 1000 units to ABC’s capacity. All existing workers are already working full-time. So, if ABC expands production, ABC has to either pay existing employees for overtime (1.5 times the regular wages) or hire new workers, who are expected to be paid 90% of the hourly wage of existing workers but produce only 75% of the hourly output of existing workers. (a) What is…
- Problem # 4 Rail Tours, Inc., sells packaged tours on rail lines, including gourmet meals and a reserved bed. The most popular tours are in the autumn, when foliage colors are at their peak. The overnight package for Saturday and Sunday morning are especially heavily booked. A market survey firm has just completed a study in which they conclude that if the package cost is $200 per couple, then Rail Tours can expect to sell 400 spaces on a typical Saturday. If the price is raised to $225, then unit sales will drop to 390. If the price is raised further to $250, unit sales drop to 380. a) From the data given, write down the demand equation and determine its intercepts. Are there any precautions needed when operating at the extreme ends of the demand curve? b) The survey firm also reports that if per capita income changes, Rail Tours can expect a large change in bookings. In particular, if per capita income falls by 1%, then bookings will tend to fall by about 2%. Are tour packages…A company is planning to manufactureand market a new two-slice electric toaster. After conducting extensive market surveys, the research department provides the following estimates: a weekly demand of 200 toasters at a price of $16 per toaster and a weekly demandof 300 toasters at a price of $14 per toaster. The financial department estimates that weekly fixed costs will be $1,400and variable costs (cost per unit) will be $4. a)Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b)Using your knowledge from Finite Math, determine the Revenue functionin terms of ?. c)Determine the Marginal Revenu eat 2 different production levelsfor example 350 and 600 units. Interpret these results.(HINT: Consider what a positive or negative first derivative implies) d)Assume that the cost function is linear. Use the financialdepartment’s estimates to express the cost…(a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the product’s first two years, the company’s profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the company’s best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose that…