A plane carrying food and water to a resort island can carry a maximum of 27000 pounds and is limited in space to carrying no more than 550 cubic feet. Each container of water weighs 60 pounds and takes up I cubic foot of cargo space. Each container of food weighs 150 pounds and takes up 5 cubic feet. Hotels on the island will buy the food for 17 dollars a pound and the water for 4 dollars per pound. What is the optimum number of containers of each item that will maximize the revenue generated by the plane? What is the maximum revenue? Let x represent the number of food containers and y represent the number of water containers Answer Tables Keypad Keyboard Shortouts Maximum revenue of $ Maximum revenue at

A plane carrying food and water to a resort island can carry a maximum of 27000 pounds and is limited in space to carrying no more than 550 cubic feet. Each container of water weighs 60 pounds and takes up I cubic foot of cargo space. Each container of food weighs 150 pounds and takes up 5 cubic feet. Hotels on the island will buy the food for 17 dollars a pound and the water for 4 dollars per pound. What is the optimum number of containers of each item that will maximize the revenue generated by the plane? What is the maximum revenue? Let x represent the number of food containers and y represent the number of water containers Answer Tables Keypad Keyboard Shortouts Maximum revenue of $ Maximum revenue at

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 1.1CE

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Sales of bottled water in the United States totaled 34.0 gallons per person in 2014. Evian, a high-quality natural spring water, costs about 60¢ per bottle, while a local brand of purified municipal water may cost only 25¢ per bottle. On average, a local municipal water utility may provide drinkable tap water for $2.90 per 1000 gallons. If the average person drinks two bottles of water per day or uses 5 gallons per day to obtain the same amount of water from the tap, what are the present worth values per person for 1 year of drinking tap water versus bottled water using (a) Evian, and (b) local-brand bottled water? Use an interest rate of 6% per year, compounded monthly, and 30 days per month.
A factory manager is planning for the manufacture of plywood to be sold overseas. The fixed cost of operation is estimated at $800,000 per month while the variable cost is $155 per thousand board feet of plywood. The selling price will depend on how much will be produced and sold and is determined by the relationship, price per thousand board feet, p = $600 – 0.05D, where D is the amount produced and sold in thousands of board feet. Determine the monthly production that will maximize the total profit and corresponsding price. Dettermine also the corresponding maximum profit per month. A) For maximum profit, (to the nearest unit) thousands of board feet per month must be produced and sold at per thousand board feet of plywood.(Round to the nearest cent.) B) The maximum profit per month is equal to $
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Israel's "Iron Dome" Works! Israel’s Iron Dome is an air defense system designed to intercept and destroy incoming missiles and mortars fired across the border by Hamas and other Palestinian factions. It works. Israel’s Defense Minister claims the Iron Dome has been 90 percent effective in shielding population centers. From 2014 until 2021, more than 2,400 projectiles were intercepted, most of them launched from the Gaza Strip by militants. In 2021 Israel upgraded the system to work on ships as well as land. Suppose the annual cost of the Iron Dome is $500 million. What is the opportunity cost of this defense spending in terms of private housing assuming a new home can be constructed for $100,000?
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Your car gets 29 miles per gallon (mpg) at 60 miles per hour (mph) and 25 mpg at 70 mph. At what speed should you make a 525-mile trip: (a) If gas costs $3 per gallon and your time is worth $18/hr? (b) If gas costs $4 per gallon and your time is worth $12/hr? (c) If gas costs $5 per gallon and your time is worth $9/hr? (d) Build a spreadsheet to calculate the total trip cost for gas costs of $2, $3, $4, and $5 and values of time of $6, $9, $12, $15, and $18 per hour. Do two tables: one at 60 mph and one at 70 mph.
enata and Jerome operate a company that makes miniature electronic surveillance drones from a warehouse in an industrial estate. Each drone costs them $49 to make and has additional fixed costs of $275 (per drone). On average, Renata and Jerome sell 85 drones per week for a price of $64 each. Renata and Jerome then decide to have a sale and reduces the price of each drone to an even numbered price between $54 and $60 inclusive. During the sale, they sell on average 150 devices per week. Q.Plot Total Cost, Total Revenue and Profit Functions on the same set of axes and Find the Marginal Revenue (MR) and Marginal Cost (MC) functions by differentiation and determine the level of output q at which MR = MC. With reference to your Excel plot, what conclusion can you make about this value?