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 is p = $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?
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 is p = $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?
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
Section: Chapter Questions
Problem 1.1CE: What life cycle cost concept begins raising concerns by year 5 with any electric vehicle (EV)? If...
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