Suppose a company has fixed costs of $32,000 and variable costs of 4/9x + 333 dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is 1365 − 5/9x dollars per unit Find the maximum revenue.
Suppose a company has fixed costs of $32,000 and variable costs of 4/9x + 333 dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is 1365 − 5/9x dollars per unit Find the maximum revenue.
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
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 1.6CE
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Suppose a company has fixed costs of $32,000 and variable costs of 4/9x + 333 dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is 1365 − 5/9x dollars per unit
Find the maximum revenue. (Round your answer to the nearest cent.)
Expert Solution
Step 1
Fixed cost= $32000
Variable cost= 4/9x+333
Selling price= 1365-5/9x
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