If R(x) = -C x² + 300x is a revenue function for x units of a company. The Company estimated D=7 F=7 that the cost (including labor, materials etc.) is RO (D+2) per unit and fixed cost is RO 3500. Find the C=2 maximum profit for the company

If R(x) = -C x² + 300x is a revenue function for x units of a company. The Company estimated D=7 F=7 that the cost (including labor, materials etc.) is RO (D+2) per unit and fixed cost is RO 3500. Find the C=2 maximum profit for the company

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 4E

See similar textbooks

Related questions

Q: ABC Company has the following information: Variable Cost per Unit is P 15; Fixed Expenses is…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you, as…

Q: A small company that manufactures automatic blowdown control valves (for applications where boilers…

A: The break-even point is the place where total cost and total revenue are equivalent, significance…

Q: The State of Maryland is considering a requirement that for every ton of CO2 produced by out-…

Q: In addition to expenses for delivery and assembly of the facilities, Ammongas also has expenses for…

A: Total Variable Cost = 8199860*Q3 - 12570Q2 + 1425600Q Where , Q = Number of plants Number of…

Q: A waiting line meeting the assumptions of M/M/1 has average time between arrivals of 2 per hour and…

A: The utilization factor or use factor is the ratio of the time that a piece of equipment is in use to…

Q: The break-even point in sales dollars may be computed as Select one: A fixed costs divided by the…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: If you know that with 10 units of output, average fixed cost is OMR 22.50 per unit and average…

A: Average cost = average fixed cost + average variable cost

Q: A chemical engineer is considering two sizes of pipes for moving distillate from a refinery to the…

A: The given information can be tabulated as follows.

Q: The fixed cost is $150, the variable cost per unit $5, and the demand function for a the product is…

A: A demand function expresses the relationship between the quantity demanded and price. The fixed…

Q: The break-even revenues would be as follows if real sales are $50,000, variable costs are $15,000,…

A: The revenue in US dollars on which a corporation does not turn a profit is known as break even…

Q: The cumulative average labor hours to assemble the first five units of product A were 15.882 hours.…

A: According to question, given that Cumulative average labour hours to assemble the initial 5 units of…

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: Here, average variable cost function is given as: AVC=96-2Q+0.05Q2 This function can be used to…

Q: The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for…

A: The break-even point refers to the point that occurs when the total revenue of the firms equals the…

Q: The making of rivet holes in structural steel members can be done by 2 methods. The first method…

A: Here, the time taken (in seconds) for one hole is given, so by using unitary method we can find the…

Q: A defense contractor has been able to summarize its total annual fixed costs as RM 100,000 and the…

A: Answer in step 2

Q: The cost of an electrode position control system in an electric arc furnace was $16,000 when the…

A: The cost of arc furance = $16000 Exponent = 0.65

Q: A company produces a certain commodity. The labor and material cost for each item produced is P65.…

A: Let the number of units be x Therefore, Total labor and material cost = P65 * n Other variable cost…

Q: The annual maintenance cost of a machine shop is P 69,994. If the cost of making the forging is P 56…

A: The annual maintenance cost of a machine shop is P69,994 It means the fixed cost is P69,994…

Q: Handheld fiber optic meters with white light polarization interferometry are useful for measuring…

A: Breakeven point refers to the situation where the total cost is equal to total revenue.

Q: Consider the long run total cost function LRTC = 30*Q - .006*Q2 + .00001*Q3. What is Q when LRAC…

A: The cost function that represents the total cost of production for all goods produced is known as…

Q: i need help

A: Since we only answer 1 question out of two, we’ll answer the first. Please resubmit the question and…

Q: The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A company that manufactures automatic blowdown control valves (for applications where boilers are…

A: given fixed cost = 156053 P variable cost per unit = 361 total units sold = 12,872 profit = 373367 P…

Q: A small company produces organic cookies. When the price is $9.00 per dozen, the average daily sales…

A: TR=p*qTR=p*x (quantity is expressed in terms of x)TR=xpNow,TC=FC+VCTC=55+(0.70x) .....…

Q: If the total revenue function R (x) = 10x + 0. then the expected revenue from the sale of 16th unit…

A: A market is the place where the buyers and the sellers interact with each other and the exchange of…

Q: Five thousand new smart camera systems are needed annually to expand the security surveillance of…

A: a. The decision tree is given below. The values are given in $1,000 units.

Q: Find the average time per unit required to produce the first 30 units, if the slope parameter of the…

Q: Restaurants in tourists' areas will close during the off-season if their: AFC is greater…

A: Answer - Given in the question that Resturants in tourist area will close during off season if. Now…

Q: The average labor cost per unit for the first batch produced by a new process is P120. The…

A: The learning curve coefficient indicates the amount of money that is saved every time production is…

Q: Ace of Diamonds purchased 78 diamond bracelets at $230 each and the regular selling price was $345.…

A: Given; Quantity of diamond bracelets purchased= 78 Purchase price= $230 Selling price= $345 50% of…

Q: Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed…

A: Break-even analysis entails calculating and examining the margin of safety for an entity based on…

Q: Sales of bottled water in the United States totaled 34.0 gallons per person in 2014. Evian, a…

A: Project MW: Cost (C) of water is $2.9 per (Q) 1,000 gallons. Project EW: Cost (C) of water is $0.6…

Q: The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver…

A: The term "cost" refers to any expense that a company incurs during the manufacturing or production…

Q: Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its…

A: Given information is: Fixed cost: $500 Variable cost: $0.65 per unit Selling price: $0.85 per unit…

Q: Rho Merchandising supplies T-shirts to AK Mart. Currently, Rho orders T-shirts from various…

A: Ordering cost can be calculated by using the following formula.

Q: M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates…

A: As we answer only 3 subparts and the question has more than 3 subparts, so we would be answering the…

Q: If the processing cost decreases by a constant 6% every time the output doubles, the slope parameter…

A: Given: The processing cost decreases by a constant = 6% every time To Find: The slope parameter of…

Q: Identify each of the following cash items whether it is fixed cost, variable cost, sunk cost, or…

A: Since you have posted a question with multiple subparts, we will solve first three subparts for you.…

Q: FEMA (Federal Emergency Management Agency) has ordered 25 specialized test units capable of field…

A: Here, FEMA has ordered 25 specialized test its capable of field checking separate elements Thompson…

Q: Revcon Products has two subcontractor bids to automate a composite winding process. Process A will…

A: We know that, Note : Option C and D automatically get rejected because they include fixed costs…

Q: The direct labor cost and direct material cost of a certain product is P300 and P400 per unit,…

A: At breakeven, total revenue is equal to total cost.

Q: The annual fixed costs for a given factory are $150,000, the variable cost is $30 per unit and the…

A: here we calculate unit should be made to have an annual profit of $25000 and choose the correct…

Q: Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for…

A: Suppose, the given cost (C) is $153,200. Quantity (Q) is 0.75 million gallon and the value of n is…

Q: Two automatic systems for dispensing maps are being compared by the state highway department. The…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: American Petroleum (AP) recently completed construction on a large refinery in Texas. The final…

A: The engineering economics focuses on gathering reliable estimates of future costs on the basis of…

Q: Cox Electric makes electronic components and has estimated the following for a new design of one of…

A: Total Profit = Total Revenue - Total Costs Total Cost = Fixed Cost +Variable Costs Variable Cost =…

Q: Avocado has received a special order for 2,400 units of its product at a special price. The product…

A: Solution- Avocado has received a special order for 2,400 units of its product at a special price.…

Question

100%

1. If R(x) = -C x² + 300x is a revenue function for x units of a company. The Company estimated
D=7
F=7
that the cost (including labor, materials etc.) is RO (D+2) per unit and fixed cost is RO 3500. Find the
C=2
maximum profit for the company

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A company produces and sells a product and fixed costs of the company are 8500000 Baisa and variable cost is RO. (35+K) per unit and sells the product at RO. (70+M) per unit.a. Find the total cost function. b. Find the total revenue function. c. Find the profit function and determine the profit when 1250 units are sold. d. How many units must be produced and sold to yield a profit of RO. 20000? e. How many units must be sold to break even?
Product X is sold for $500 per unit. The total cost of production per year, including capital recovery and a return, is given by the expression TC = 0.04n3 − 700n + 50, 000 where n is the number of units sold. If TC represents the total of all fixed and variable costs, determine the following: a. The value of n that maximizes profit. b. The maximum profit for a year. c. The fixed cost per year.
A vacuum cleaner retailer has been selling 84 units per month of the basic Bissell stick model for $80. The retailer’s variable costs for that model are $51. (a) If a retail manager has only the information provided above, calculate the breakeven sales level for lowering the price of the basic Bissell stick model to $72. Show your work. (b) Assume that the retail manager then finds out that when a customer buys a Bissell stick model, the customer also spends an average of $20 for vacuum cleaner bags and that the retailer’s contribution margin on vacuum cleaner bags is 55%. Given this additional information, recalculate the breakeven sales level for lowering the price of the basic Bissell stick model to $72. Again, show your work. (c) Would having the additional information about the vacuum cleaner bags make it easier for the manager to make more profit from the price decrease or would it make it harder for her to do so? Explain your reasoning.
Suppose ADJ Corporation's break-even sales volume is $450,000 with fixedcosts of $200.000.(a) Compute the contribution margin percentage.(b) Compute the selling price if the variable costs are $ 12 per unit.
A company has a fixed cost of $30000 and a production cost of $6 for each disposable camera it manufactures. Each camera sells for $10 1. What is the profit function? 2. Compute the profit corresponding to a production level of 15000 cameras 3. What is the break even point for the company
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 = 79 – 0.11D units. The fixed cost is $800 per month and the variable cost $33 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.
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?
You are setting up a part-time business with an initial investment of $15,000. The unitcost of the product is $11.80, and the selling price is $19.30.a) Find equations for the total cost C and total revenue R for x units.b) Find the break-even point by finding the point of intersection of the cost and revenueequations.c) How many units would yield a profit of $1000?
A musical Disc is being produced by a music recording studio, and the company estimates that it will cost $100,000 to record the Disc and $6.75 per unit to duplicate and distribute the Disc. The Disc wholesale cost is $19.95. (a) Find the cost and revenue functions (b) Find the profit function (c) Find the number of Disc’s the company must produce and sell in order to break even (d) Draw a graph with the cost and revenue functions on the same axes, indicating the breakeven point.
a company makes coffee mugs it costs them $8 per mug to make the mugs in addition to their daily overhead cost of $90 if the company charges $12 per mug what is their simplified daily profit function P(x)
Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integer
Suppose that the ABC Corporation has a production (and sales) capacity of $1,000,000 per month. Its fixed costs—over a considerable range of volume—are $350,000 per month, and the variable costs are $0.50 per dollar of sales.a) What is the annual breakeven point volume (D')? b) What would be the effect on D' of decreasing the variable cost per unit by 25% if the fixed costs thereby increased by 10%?c) What would be the effect on D' if the fixed costs were decreased by 10% and the variable cost per unit were increased by the same percentage?