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Q: = 400 QQ = 500 QQ = 600 1 140 60 40 80 160 320 2 230 110 40 40 110 230 3 320 160 80 40 60 140
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- Leonard Presby, Inc., has an annual demand rate of 1,000units but can produce at an average production rate of 2,000 units. Setup cost is $10; carrying cost is $1. What is the optimalnumber of units to be produced each time?Small and medium sized contractors are most likely to keep ony____on staffA company has determined that the price and the monthly demand of one of its products are related by the equation D = √(400 − p), where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,125/month, and the variable costs are $100/unit. Use this information to answer What is the optimal number of units that should be produced and sold each month? (a) 10 units (b) 15 units (c) 20 units (d) 25 units. Select the closest answer.
- the mahogany cabinet and furniture company makes chairs. the fixed coat per month of making chairs is $7500 and the variable cost per chair is $40. price is related to demand, according to the following linear equation: v = 400 - 1.2p develop the nonlinear profit function for this company and determine the price that will maximize profit, the optimal volume, and the maximum profit per monthA company has determine the price and the monthly demand of its products are related by the equation D= √400-p where p is the price per unit in dollar and D is the monthly demand. The associated fixed costs are $1,125 per month and the variable costs are $100/unit. Use this information to answer the following: What is the optimal number of units that should be produced and sold each month? Determine the value of D that represents the break-even point?Many times, the selling price of a product, p, is related to the demand, D, according to the relationship p=a-bD. However, a company has found that the price of their product can be related to demand ( in units per year) according to the following equation: p= $88.5 – (0.5)D0.5 . In addition, there is a fixed cost of $20,000 per year and the variable cost to manufacture the product is $20 per unit. a. What level of demand maximizes total revenue and the maximum revenue? b. What level of demand maximizes total profit for this product and the maximum profit?
- The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per barrel is $16. Price is related to demand, according to the following linear equation: v = 75,000 - 1,153.8p Develop the nonlinear profit function for the brewery and determine the price that will maximize profit, the optimal volume, and the maximum profit per year.If a bus company adds a third daily bus between 2 cities , the company's total costs will increase from $500 to $600 per day and its total revenue will increase by $150 per day. Should the company add the 3rd bus?Pravjot Limited is launching a new product in 12 weeks and has a project team working on pricing strategy. The team has conducted some initial market research and considers that at a price of £400 no items will be sold, however for each successive price reduction of £25, weekly sales will increase by 10 units. The weekly product specific fixed costs are £2,500 and the variable costs are £75. Required: Calculate the optimum selling price and the quantity that would be sold at that price.
- 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?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.a) Derive how to find the number of units that should be produced annually to maximize profit.b) What is the maximum profit per year?c) What is the annual breakeven point?d)What is the company’s range of profitable output per year?Electrical Components Profit A company’s dailyprofit from the production and sale of electrical components can be described by the equation P(x) =6.45x - 2000 dollars, where x is the number of unitsproduced and sold. What level of production andsales will give a daily profit of more than $10,900?
