An industrial manufacturing fim can produce up to 250 units per week of a machine tool; the selling price is $20 per unit. As discussed in class, draw linear cost and revenue functions to illustrate the optimization problem faced by the firm. The variable costs per unit are $12 and the weekly fixed cost is $1200. Calculate the Break-Even Volume (number of units) for this enterprise; in addition, what will happen to the firm's profit or loss figure if weekly sales are only 120 units?

An industrial manufacturing fim can produce up to 250 units per week of a machine tool; the selling price is $20 per unit. As discussed in class, draw linear cost and revenue functions to illustrate the optimization problem faced by the firm. The variable costs per unit are $12 and the weekly fixed cost is $1200. Calculate the Break-Even Volume (number of units) for this enterprise; in addition, what will happen to the firm's profit or loss figure if weekly sales are only 120 units?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 49P: If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60...

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