The business venture involves the sale of decorative jewelry cases. It costs the startup $280 to produce 40 decorative jewelry cases a week while it costs $320 to produce 60 decorative cases per week as well. you and your partners are told that the demand, x, for your product is given as a linear function of price, p, where p(x)=15−0.02x Use the information above, to answer the following questions: 1.Assume that the total cost C(x),is linearly related to the output x. Find an equation for C(x).Hence, determine the Fixed Cost and Variable Cost for this startup.a. Form the Revenue and Profit Functions based on the information given.b. Hence, determine the Break-even points to the nearest whole number and discuss the relationship between the intersection points of the graphs of R(x)and C(x).c. If the plan is to make at most 800 jewellery cases a week, what range of quantity demanded can the startup ensure a profit is made.2. Determine the Maximum Profit that can be made by this new business venture.
The business venture involves the sale of decorative jewelry cases. It costs the startup $280 to produce 40 decorative jewelry cases a week while it costs $320 to produce 60 decorative cases per week as well. you and your partners are told that the demand, x, for your product is given as a linear function of price, p, where p(x)=15−0.02x Use the information above, to answer the following questions: 1.Assume that the total cost C(x),is linearly related to the output x. Find an equation for C(x).Hence, determine the Fixed Cost and Variable Cost for this startup.a. Form the Revenue and Profit Functions based on the information given.b. Hence, determine the Break-even points to the nearest whole number and discuss the relationship between the intersection points of the graphs of R(x)and C(x).c. If the plan is to make at most 800 jewellery cases a week, what range of quantity demanded can the startup ensure a profit is made.2. Determine the Maximum Profit that can be made by this new business venture.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 2PB: Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...
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The business venture involves the sale of decorative jewelry cases. It costs the startup $280 to produce 40 decorative jewelry cases a week while it costs $320 to produce 60 decorative cases per week as well. you and your partners are told that the demand, x, for your product is given as a linear function of price, p, where p(x)=15−0.02x Use the information above, to answer the following questions: 1.Assume that the total cost C(x),is linearly related to the output x. Find an equation for C(x).Hence, determine the Fixed Cost and Variable Cost for this startup.a. Form the Revenue and Profit Functions based on the information given.b. Hence, determine the Break-even points to the nearest whole number and discuss the relationship between the intersection points of the graphs of R(x)and C(x).c. If the plan is to make at most 800 jewellery cases a week, what range of quantity demanded can the startup ensure a profit is made.2. Determine the Maximum Profit that can be made by this new business venture.
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