Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its marginal cost for a product is МС- 4x+ 25, that its marginal revenue is MR%3D 75 - 6х, and that the cost of production of 60 units is $8,880. (a) Find the optimal level of production. units (b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level.
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- Your firm has discovered a cheap and efficient technology of turning used plastic bottles and bags into various products. You limit your attention to the following two production options: you can produce plastic utensils or helmets. In the "utensils" case your estimat ann revenue $25,000, while production will cost you $8,000. However, in your "helmets" option, you expect to sell 2000 helmets every year at $10 each and the average total cost of every helmet will be $3. What is your accounting ?profit if you decided to produce helmetsAn apple grower has discovered a process for producing oranges that requires two inputs. The production function is Q = min{2x, y}, where x and y are the amounts of inputs 1 and 2 that he uses. The prices of these two inputs are wx = $5 and wy = $10, respectively. The minimum cost of producing 160 units is therefore:a. $2,400.b. $1,600c. $800.d. $2,000.e. $8,000. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Given that the relationship between the sales price for one of a company’s products and the quantity sold per month is D = 500 – 5p units where D is the demand or quantity sold per month and p is the unit price in dollars. The fixed cost is $1,000 per month, and the variable cost is $20 per unit produced. (a) Determine the optimal number of units that should be produced and sold per month. (b) What is the maximum profit per month related to the product? (c) What is the company’s range of profitable demand? Support your answers graphically.
- The National Bank of Union City currently has one outsidedrive-up teller. It takes the teller an average of three minutes (exponentially distributed) to serve a bank customer.Customers arrive at the drive-up window at the rate of12 per hour (Poisson distributed). The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of $20,000. It isassumed that arriving cars would be equally divided between both windows. The operations officer estimates thateach minute’s reduction in customer waiting time wouldincrease the bank’s revenue by $2000 annually. Should thesecond drive-up window be installed? What other factorsshould be considered in the decision besides cost?A company has determined that the price and the monthly demand of one of its products are related by the equation D = √(400 − p), where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,125/month, and the variable costs are $100/unit. Use this information to answer, Which of the following values of D represents the breakeven point? (a) 10 units (b) 15 units (c) 20 units (d) 25 units.1 Vehicle purchase. A student living in Lower Hutt is considering the purchase of a newvehicle. An electric vehicle (EV) can be purchased for $40,000 and has a running cost of $0.20per km. Alternatively, a (petrol) combustion vehicle (CV) can purchased for $25,000 and has arunning cost of $0.45 per km. The student is determined to make a decision which minimisesthe total cost depending on the number of kilometres that the vehicle will be used.(Here you should assume that the running costs also account for periodic costs such as mainte-nance, insurance, registration.)(a) Describe the decision and environment variables associated with this problem.(b) Determine the utility function R(D, X) which maps the outcomes to the total cost incurred.(c) Use a break-even analysis to determine the number of km for which the optimal decisiondiffers above and below this amount. Specifically, plot R(D, X), determine where thebreak-even point occurs and mark it clearly on your plot, then briefly…
- A company has determine the price and the monthly demand of its products are related by the equation D= √400-p where p is the price per unit in dollar and D is the monthly demand. The associated fixed costs are $1,125 per month and the variable costs are $100/unit. Use this information to answer the following: What is the optimal number of units that should be produced and sold each month? Determine the value of D that represents the break-even point?Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.A firm believes a product’s sales volume (S) depends on its unit selling price (P) as S = $100 − P. The production cost (C) is $1000 + 10S. (a) Graph the sales volume (S) from 0 to 100 on the x axis, total cost and total income from $0 to $2500 on the y axis, C = $1000 + 10S, and plot the curve of total income. Mark the breakeven points on the graph. (b) Determine the breakeven point (lowest sales volume at which total sales income just equals total production cost). (c) Determine the sales volume (S) at which the firm’s profit is a maximum.
- The total cost a power plant ($/megawatts) to produce electricity is Y=12+1.3X+0.24 X2 , where X is in megawatts. The estimated selling price of electricity is (16-0.23X) per megawatts. Find the value of X that maximizes profit. Group of answer choices Less than 10 megawatts Between 10-12 megawatts Between 12-14 megawatts More than 14 megawatts DontAnswer all parts please Go Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7. a. What is the break-even point in number of kits? b. How many kits does Go Green needs to sell to earn a profit of $70,000? c. If the total fixed cost increases to $160,000 next year: i. What will Go Green's break-even point be in number of kits? ii. What profit (or loss) will Go Green have if it sells 30,000 kits? iii. How many kits will Go Green have to sell to earn a profit of $70,000?A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 78 – 0.11D units. The fixed cost is $800 per month and the variable cost $32 per unit produced. What number of units, D*,should be produced per month and sold to maximize the profit per month related to the product? Round your answer to 2 decimal places.