Kk.299. A large wood products company is negotiating a contract to sell plywood overseas. The fixed costof the company which can be allocated to the production of the plywood is nine hundred thousanddollars per month. The variable cost per thousand board feet is $113.50. Price charged will bedetermined by p=850- (0.06)D per 1000 board feet.a. For this situation, determine the optimal monthly sales volume for this product and calculate theprofit (or loss) at the optimal volume.b. What is the range of profitable demand during a month?a. The optimal monthly sales volume for this product iswhole number.)The profit (or loss) at the optimal volume is S (Round to the nearest dollar.)units. (Round to the nearestb. The range of profitable demand during a month is from units tolower limit and down the upper limit to the nearest whole number.units. (Round up the

Variable cost refers to expenses that vary in direct proportion to the level of production or sales…

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cos of the company which can be allocated to the production of the plywood is nine hundred thousan dollars per month. The variable cost per thousand board feet is $113.50. Price charged will be determined by p=850- (0.06)D per 1000 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate th profit (or loss) at the optimal volume. b. What is the range of profitable demand during a month? a. The optimal monthly sales volume for this product is units. (Round to the nearest

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cos of the company which can be allocated to the production of the plywood is nine hundred thousan dollars per month. The variable cost per thousand board feet is $113.50. Price charged will be determined by p=850- (0.06)D per 1000 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate th profit (or loss) at the optimal volume. b. What is the range of profitable demand during a month? a. The optimal monthly sales volume for this product is units. (Round to the nearest

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 1E

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