MyCollege Clothing Company manufactures expensive sweatshirts to sell to college bookstores in orders of up to 75. MyCollege Clothing has created a cost function to make x number of sweatshirts.. C(x) = 4000 + 0.25x² 0sxs 75 MyCollege Clothing finds that in order to sell x sweatshirts, the price per shirt must be p = 150 - 0.5x. A) Graph the cost function. (Be sure to include all key information in the graph.) B) What are MyClothing's fixed costs? Where can these be seen in the graph? C) Find the revenue function and graph it on the same axes as the cost function. (Be sure to include all key information in the graph.) D) What is the point(s) of intersection of these two graphs? (Be sure to give and x and y coordinate.) E) What does the intersection of these two graphs mean in the context of the problem? F) Find the profit function. Graph the profit function in a new set of axes. (Be sure to include all key information in the graph.) G) How many sweatshirts should MyCollege Clothing manufacture to make a profit? Where can I find this in the profit function created in F? (Round your answer up to the nearest whole number.)
MyCollege Clothing Company manufactures expensive sweatshirts to sell to college bookstores in orders of up to 75. MyCollege Clothing has created a cost function to make x number of sweatshirts.. C(x) = 4000 + 0.25x² 0sxs 75 MyCollege Clothing finds that in order to sell x sweatshirts, the price per shirt must be p = 150 - 0.5x. A) Graph the cost function. (Be sure to include all key information in the graph.) B) What are MyClothing's fixed costs? Where can these be seen in the graph? C) Find the revenue function and graph it on the same axes as the cost function. (Be sure to include all key information in the graph.) D) What is the point(s) of intersection of these two graphs? (Be sure to give and x and y coordinate.) E) What does the intersection of these two graphs mean in the context of the problem? F) Find the profit function. Graph the profit function in a new set of axes. (Be sure to include all key information in the graph.) G) How many sweatshirts should MyCollege Clothing manufacture to make a profit? Where can I find this in the profit function created in F? (Round your answer up to the nearest whole number.)
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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Question
I attached the soloution of D part
Kindly see this and solve E,F and G part only (only 3 parts)
Solve plz right now plz and take a thumb up
And solve similar like the soloution is attached
Transcribed Image Text:(D).
10000
8000
6000
E
4000
FC=4000
2000
15
30
45
60
75
Units of sweatshirts
According to the above figure, the point of
intersection is shown by point E where
the cost and revenue both are 4000 and
the unit of shirts is 32 approx.
( x, y) = (32, 4000)
Note; the exact value of units of shirts is
31.69)
Total cost, Fixed cost, Total revenue
Transcribed Image Text:MyCollege Clothing Company manufactures expensive sweatshirts to sell to college
bookstores in orders of up to 75. MyCollege Clothing has created a cost function to
make x number of sweatshirts..
C(x) = 4000 + 0.25x² 0sxs75
MyCollege Clothing finds that in order to sell x sweatshirts, the price per shirt must be
p = 150 - 0.5x.
A) Graph the cost function. (Be sure to include all key information in the graph.)
B) What are MyClothing's fixed costs? Where can these be seen in the graph?
C) Find the revenue function and graph it on the same axes as the cost function. (Be
sure to include all key information in the graph.)
D) What is the point(s) of intersection of these two graphs? (Be sure to give and x and y
coordinate.)
E) What does the intersection of these two graphs mean in the context of the problem?
F) Find the profit function. Graph the profit function in a new set of axes. (Be sure to
include all key information in the graph.)
G) How many sweatshirts should MyCollege Clothing manufacture to make a profit?
Where can I find this in the profit function created in F? (Round your answer up to the
nearest whole number.)
H) The lona College intern suggests that the company should increase the number of
sweatshirts it will sell in an order, because they are not maximizing their profits for each
order.
H1) Find the marginal profit.
H2) How does the marginal profit show that the company can continue to
increase its profit?
H3) What number of sweatshirts should they make and sell to maximize the
profits?
H4) What would the maximum profit be?
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