Explain how to figure out the number of tubes each company would need to manufacture and sell to earn a profit that is greater than 0. What is the minimum number of lip color tubes each company would need to manufacture and sell in order to earn a profit greater than 0? The Alcone CompanyThis company makes a popular shade of lipcolor that retails for $45 per tube. The lipcolor costs The Alcone Company $36 pertube to make and the monthly costsassociated with manufacturing just thiscolor are $1,500.Besame BeautyA popular shade of lip color from thiscompany costs the consumer $55 per tube.The process to make the lip color costsBesame Beauty $44 per tube and themonthly costs associated with this are$2,200.

The term "manufacturing" basically refers to the process of transforming raw materials or component…

Explain how to figure out the number of tubes each company would need to manufacture and sell to earn a profit that is greater than 0. What is the minimum number of lip color tubes each company would need to manufacture and sell in order to earn a profit greater than 0?

Explain how to figure out the number of tubes each company would need to manufacture and sell to earn a profit that is greater than 0. What is the minimum number of lip color tubes each company would need to manufacture and sell in order to earn a profit greater than 0?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

The Alcone Company
This company makes a popular shade of lip
color that retails for $45 per tube. The lip
color costs The Alcone Company $36 per
tube to make and the monthly costs
associated with manufacturing just this
color are $1,500.
Besame Beauty
A popular shade of lip color from this
company costs the consumer $55 per tube.
The process to make the lip color costs
Besame Beauty $44 per tube and the
monthly costs associated with this are
$2,200.

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