Suppose that the marginal revenue for a product is MR = 900 and the marginal cost is MC = 33,(x+9), with a fixed cost of $1434. Find the profit or loss from the production and sale of 5 units. A loss of $735 B loss of $13,010 c) profit of $13,010 D profit of $10,810 E loss of $10,810
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- If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers. The demand for its product is p = 15 - (x /25) , its production cost per unit is US$5.00 and its fixed cost are the same as for company A. Revenue function for company A = R(x) = 9.8x Cost function for company A = C(x) = 2625+2.3x Profit function for company A = π(x) = 7.5x -2625 (iv) Using a spreadsheet, create a table for showing x, R(x)?, C(x) for company A in the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450. (v) Graph the functions from (iv) above on the same axes. (vi) From your graph, determine the break-even level of output for company AA company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 77 – 0.12D units. The fixed cost is $800 per month and the variable cost $25 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.Apple wants to launch a new product. it is observed that the fixed cost of the new product is $35,000 and the variable cost per unit is $500. The revenue function for the sale of D unit is 5000D-100 D2. The company's break even points are
- If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost perunit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers. The demand for its product is p = 15 − x/125 , its production cost per unit is US$5.00 i (i) Derive the total revenue function,R(x) for company B.(ii) Derive the profit function,Π(x) for company B.(ii) How many t-shirts must company B sell to in order to break-even.(iv) How many t-shirts must company B sell to maximise its profit.Q5) A firm is planning to manufacture a new product. The sales department estimates that the quantity that can be sold depends on the selling price. As the selling price is increased, the quantity that can be sold decreases. Numerically they estimate: P = $35.00 - 0.02Q where P =selling price per unit Q = quantity sold per year On the other hand, the management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases. They estimate C = $4.00Q + $8000 where C = cost to produce and sell Q per year The firm's management wishes to produce and sell the product at the rate that will maximize profit, that is, where income minus cost will be a maximum. What quantity should the decision makers plan to produce and sell each year?The total cost of an MBF plant is 35,000 units if it produces 500 products, and a total cost of 60,000 units if it produces 1,000 units of the same product. If each number of products is sold at a price of 100 monetary units, it is recommended: a. Draw a diagram to determine its breaking point. B. If we want to make a profit of 20,000 units by selling 1,500 products, what is the variable cost? P(Profit) = pQ-(F+vQ) TR=pQ Q=F/(p_v) TC=F+vQ
- A manufacturer of dishwashers is preparing to set the price on a new design. Demand is thought to depend on the price and is represented by D = 2100 – 4.3P The accounting department estimates that the total costs can be represented by C = 4840 + 6.2D (a) Develop a model for the total profit in terms of the price, P. (b) What will be the total profit if the price is $380.Ella Ltd recently started to manufacture and sell productDG. The variable cost of product DG is £4 per unit and the totalweekly fixed costs are £18 000.The company has set the initial selling price of product DG byadding a mark up of 40 per cent to its total unit cost. It has assumedthat production and sales will be 3000 units per week.The company holds no stocks of product DG.Required:(a) Calculate for product DG:(i) the initial selling price per unit; and(ii) the resultant weekly profit. The management accountant has established that alinear relationship between the unit selling price (P in £)and the weekly demand (Q in units) for product DG isgiven by:P = 20 - 0:002QThe marginal revenue (MR in £ per unit) is related to weeklydemand (Q in units) by the equation:MR = 20 - 0:004Q(b) Calculate the selling price per unit for product DG that shouldbe set in order to maximize weekly profit. (c) Distinguish briefly between penetration and skimming pricingpolicies when launching a new…If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost perunit is US$2.30. Company B also manufactures t-shirts and sell them directly to consumers.The demand for its product is p = 15 −x 125, its production cost per unit is US$5.00and its fixed cost are the same as for company A.(i) Derive the total revenue function, R(x) for company A.(ii) Derive the total cost function, C(x) for company A.(iii) Derive the profit function, Π(x) for company A.(iv) Using a spreadsheet, create a table for showing x, R(x)?, C(x) for company Ain the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450.(v) Graph the functions from (d) above on the same axes.(vi) From your graph, determine the break-even level of output for company A.(vii) Derive the total revenue function, R(x) for company B.(viii) Derive the profit function,…
- The management believes that every 9% increase in the selling price of one of the company's products results in a 10% decrease in the product's total unit sales. The variable production cost of this product is ₱12.60 per unit and the variable selling and administrative cost is ₱4.90 per unit. The product's profit-maximizing price is closest to: a. ₱104.20 b. ₱19.11 c. ₱20.83 d. ₱96.12A 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?A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month. 1) What is the company’s range of profitable output per year?
