d. At what volumes do breakeven occur? e. What is the company's range of profitable demand?

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
Chapter14: Pricing Techniques And Analysis
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Q1. A company produces circuit boards used to update old-fashioned computer equipment. The taxes cost the
company $20,000 per month, and the executive salaries cost $30,000 per month. The Materials used in the
production cost $60 per circuit board. The selling price per unit isp $150 -0.02D. Maximum output of the plant
is 4,000 units per month.
a. What is the profit per month?
b. Determine optimum demand for this product.
c. What is the maximum profit per month?
d. At what volumes do breakeven occur?
e. What is the company's range of profitable demand?
Transcribed Image Text:In Protected View. Enable Editing e isn't genuine, and you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. Get genuine Office Q1. A company produces circuit boards used to update old-fashioned computer equipment. The taxes cost the company $20,000 per month, and the executive salaries cost $30,000 per month. The Materials used in the production cost $60 per circuit board. The selling price per unit isp $150 -0.02D. Maximum output of the plant is 4,000 units per month. a. What is the profit per month? b. Determine optimum demand for this product. c. What is the maximum profit per month? d. At what volumes do breakeven occur? e. What is the company's range of profitable demand?
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