The price/demand function of a company is p= 42 – 0.001D and the cost function is 30D + 1200. Determine the ff: a. The optimal demand and value ($) b. The demand in unit and amount ($) that will give highest revenue c. Breakeven points and range of profitability

The price/demand function of a company is p= 42 – 0.001D and the cost function is 30D + 1200. Determine the ff: a. The optimal demand and value ($) b. The demand in unit and amount ($) that will give highest revenue c. Breakeven points and range of profitability

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

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1E

See similar textbooks

Related questions

Q: Suppose the the demand function is p(z) = (51 – 3z) (for z < 17). %3D A. What is the marginal price ...

A: Demand function shows the functional relationship between Quantity demanded for a commodity and its ...

Q: What are the present worth and future worth of P6000 deposited at the end of every month for 4 years...

A: Quarterly deposit = 6000 x 4 =24,000 Quarterly rate of interest rate = 12/400 =0.03 Total periods = ...

Q: A machine has a first cost of $5,000 with a useful life of 5 years. It will have a salvage value of ...

A: Given The first cost of machine =$5000 Useful life= 5 years Yearly maintenance cost =$500 Salvage v...

Q: The example of "analog reasoning" described in Frijters/Foster likened migration to... a)A picnic in...

A: Let's say individuals want to model the economic phenomenon of labour migration as an example of ana...

Q: 18. Markets are gooc outcome? f so,

A: The market works through the market forces of demand and supply. The changes in the demand and suppl...

Q: The controversial campaign spending decision of Citizens United v. Federal Election Commission Selec...

A: The citizen's united versus federal election commission The supreme court of America prohibited the ...

Q: Use the following graph to answer the following question: Price ($) 40 25 15 5 D. Quantity 15 25 50 ...

A: Given

Q: Which of the following best describe the physician-hospital relationship in most American hospitals?...

A: In the American economy, healthcare system has improved over the time to maintain the health of the ...

Q: Price ($) 40 25 15 5 3\ Quantity 15 25 50 75 100 200 Refer to the graph above. Suppose that the gove...

A: The answer is - Option a. No surplus or shortage, only equilibrium.

Q: Do global cities widen the gap between the rich and the poor

A: Globalization refers to the economic approach to open-up the boundaries of the countries to make dif...

Q: The chapter "Contemporary Models of Development and Underdevelopment" discusses some “trap” issues f...

A: Development economics deals with the branch of economics which focuses on improving fiscal, economic...

Q: Question 8 Suppose Total revenue from the sale of output is given below Output Total Revenue 1. 9. 1...

A: Marginal revenue is a central concept in microeconomics that describes the additional total revenue ...

Q: Imposing a sales tax on sellers of a product has an effect that is similar to which of the following...

A: Implementation of sales tax on the sellers will affect the supply of the goods.

Q: Place the orange line (square symbol) on the following graph to show the most likely short-run suppl...

A: The Short-Run Supply curve for apricots is shown by the orange line.

Q: The inverse supply equation for clay pots is P = 0.5QS + 1; the inverse demand equation is P = –2QD ...

A: P = 0.5QS + 1 -------> Inverse supply equation => QS = (P-1) / 0.5 =>QS = 2P - 2 -------...

Q: Calculate breakeven point.

A: Answer is given below

Q: P(-1.35

A: P(-1.35 < z < 1.35)

Q: Suppose a monopoly firm has the following Cost and Demand functions: TC=Q2 P=80-Q MC=2...

A: The monopoly maximizes the profit where the MR=MC.

Q: Determine the present value of a perpetuity of 10,000 pesos payable semi-annually if the money is wo...

A: Semi-Annual Amount = 10,000 number of payment in a year = 2 compounding period = 4 r = 8%

Q: machine cost P45,000 with an estimated life of 5 years. Its salvage value is P 2,500. Find its depre...

A: Machine cost = 45000 Life = 5 years Salvage = 2500

Q: 340 425 6 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the gr...

A: ** SOLUTION :- Based on the given information the answer is provided as below.

Q: Person A can trust or not trust person B. If person A decides to not trust, both players get a zero ...

A: Extensive form of the game We should have a higher payoff for B for abusing compared to honorin...

Q: 1. An industrial plant is considering the purchase of a centrifugal pump. Three offers were received...

A: The economic life of an asset is the amount of time it is useful to its owner. Salvage value is an a...

Q: Linear stages theory, Structural-change model (Lewis two-sector model), International dependence/dom...

A: Since you have posted multiple questions, we will answer the first question for you. If you want any...

Q: t of P 7.40 per piece. The fixed charges on the business is P 100,000.00 a month. If he sells the fi...

A: Given Fixed charges = 100000 Variable cost = 7.40 Selling price = 95 per unit Labor cost = 16.20 Mat...

Q: Q2. Given the following data in 2020, calculate the country's GDP in that year. Show steps of your c...

A: Investment= Purchases of capital equipment+ Purchases of structures+ Inventory accumulation Investme...

Q: Finding the Economic Life of the NewCNC Machine. Find TC and EUAC for each year.

A: ANSWER The economic life of the the defender is often 1 year so a proper analysis may be between d...

Q: Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that ca...

A: Elasticity of demand measures the responsiveness of quantity demanded the respect to change in price...

Q: Marc is selling his house through a real estate agent whose commission is 6% of the selling price. W...

A: Answer to the question is as follows:

Q: When considering where to go to lunch, you think back to your past experiences at different restaura...

A: Business is the activities if selling and buying the goods and services in order to make profit . to...

Q: Consider the market for laptop bags. Suppose the price of laptops decreases. This change has what ef...

A: Two goods are complements when they are used together

Q: To remedy the traffic situation at a busy intersection in Quezon City, two plans are being considere...

A: Given: Plan A: Cost of Cloverleaf=P 92,00,000 Plan B: P 65,00,000 Interest rate=18%

Q: Mortgage backed securities pass through all payments of interest and principal received on a pool of...

A: Mortgage-backed securities are generally the variations of assets-backed securities formed by clubbi...

Q: This system provides materials needed for goods and services, and serves as a sink for our wastes:

A: Manufacturing system: The manufacturing system is responsible for implementing and operating the pro...

Q: Why the hospitality industry is important to the society? What are the advantages of working in hosp...

A: Hospitality industry includes hotel , transportation or tourism services etc. It is services based ...

Q: Suppose that initially the money supply is $1 trillion, the price level equals 3, the real GDP is $5...

A: Here we calculate the new price level after the increases in money supply by using the given informa...

Q: Consider a one-period model like the one considered in class. There are three states. At the beginni...

A: Expected income at the beginning of the economy (i.e., before the job search) would be 4.

Q: In a paragraph with a maximum of three sentences, explain the difference between an ordinary busines...

A: Business: The term business refers to an organization which has element occupied with business, or a...

Q: How much money must you invest today in order to withdraw P 15,640 annually for6 years if the intere...

A: Given information, Annual amount (A): ₱ 15,640 Time period (N): 6 years Interest rate (i): 2.91% T...

Q: . An amount of P 250,000 is deposited now into a savings account that earns 8% per year. This amount...

A: Given: Amount=P 250000 Interest rate (r)=8%

Q: In a private closed economy where MPC = 0.90, if consumers reduce their spending by $5 billion and f...

A: Given the MPC = 0.90 Reduction in consumption = $5 billion Decrease in investment = $4 billion

Q: Which of the following could explain an increase in the equilibrium interest rate and a decrease in ...

A: Market for loanable funds shows demand and supply for loanable funds and equilibrium in the market i...

Q: Suppose market demand and supply are given by Qd = 100 – 2P and Qs = 5 + 3P. If the government sets ...

A: At price 30, Quantity demanded can be found out by substituting P = 30 in the demand function. At pr...

Q: Which of the following will shift an economy's production possibilities curve outward?

A: Production possibility curve is the graphical illustration of the the combination of two goods that ...

Q: Use the information in the table below. The economy of Libraryland can produce only books and magazi...

A: Here the opportunity cost is the amount of time spent on production of magazine vs the time spent on...

Q: P(z < 1.54) = a 0.9011 b 0.9195 c 0.9382 d 0.9574

A: We have to find the area of z less than 1.54 under the standard normal table. i.e., P(z<1.54) =?

Q: Money borrowed today is to be paid in 5 equal payments at the end of each quarter. If the interest i...

A: Given: The quarterly payment is = ₱ 21,293 The interest rate is = 3% compounded quarterly Money to b...

Q: good i. P =200 - 10Q ii. P =200 - (20/3)Q Select an answer and submit. For keyboard navigation, use ...

A: here we calculate the market demand curve by the following method as follow;

Q: The tragedy of the commons is the absence of incentives to O A. discover the resource. O B. prevent ...

A: TRAGEDY OF COMMON REFERS TO A SITUATION IN WHICH INDIVIDUAL WITH ACCESS TO A SHARED RESOURCE ALSO CA...

Q: 3.) Find the cash price of a generator which was bought in installment basis that requires a down pa...

A: Note : You have posted multiple questions. As per the Bartleby guidelines, we are allowed to answer ...

Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

The price/demand function of a company is p = 42 – 0.001D and the cost function is 30D + 1200. Determine the ff:
a. The optimal demand and value ($)
b. The demand in unit and amount ($) that will give highest revenue
c. Breakeven points and range of profitability

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

EXAMPLE 1.1 Alpha Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find the break-even sales.
A 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, Which of the following values of D represents the breakeven point? (a) 10 units (b) 15 units (c) 20 units (d) 25 units.
EXAMPLE 1.1 Alpha Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find the break-even sales quantity
TransTech sells its product for $150. Marginal cost is a constant $135 per unit and fixed costs are $24,375. What is the breakeven quantity? Please specify your answer as an integer. Save your answer What is the breakeven revenue? Please specify your answer as an integer.
A manufacturing plant has a potential production capacity of 1,000 units per month(capacity can be increased by 10 percent if subcontractors are employed). The plantis normally operated at about 80 percent of capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay theskilled workers higher overtime wage rates. For output levels up to 80 percent ofcapacity, variable cost per unit is $100. Above 80 percent and up to 90 percent, variable costs on this additional output increase by 10 percent. When output is above90 percent and up to 100 percent of capacity, the additional units cost an additional25 percent over the unit variable costs for outputs up to 80 percent of capacity. Forproduction above 100 percent and up to 110 percent of capacity, extensive subcontracting work is used and the unit variable costs of these additional units are 50 percent above those at output levels up to 80 percent of capacity. At 80 percent…
Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integer
Solve it correctly Q)Transtech sells its product for $100. Marginal cost is a constant $70 per unit and fixed costs are 70,500 what is the breakeven quantity? please specify your answer as an integer what is the breakeven revenue ? please specify your answer as an integer
The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost: Total fixed cost $100,000 Average Variable Cost $ 20 Selling Price $ 30 a) Determine the breakeven output and total sales revenues. b) Determine the output that would generate a total profit of $ 60000 and total sales revenue at that output level. c) If total fixed cost reduced to $ 40,000 then what is the breakeven point. How much units they have to sale if they require to have a profit of $ 60,000. d) Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned. e) Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.
Disc Buddy, Inc. produces flash drives. The selling price is $8 per drive. The variable cost of production is $2.40 per unit and the fixed cost per month is $3,600. Calculate the contribution margin associated with each flash In August, the company sold 200 more flash drives than What is the expected effect on profit of selling the additional drives?
Risks and returns are generally __________ correlated. a. inversely b. negatively c. not d. positively.
1. XYZ company’s marketing department recommends to manufacture and market a newe co-friendly and sustainable product. The financial department provides the following cost Php 6,000 is the estimated fixed costs and the estimated variable cost is Php 100 per unit. The revenue function is given with an equation of 150x - 0.005x2. Determine the following: a) the optimal demand and value (Php) b)The demand in unit and amount (Php) that will give highest revenue c) Break even points and range of profitability
Break-Even Analysis Jesaki Publishing is planning for a new novel, and figures fixed costs (overhead, advances, promotion, copy editing, typesetting) at $65,000, and variable costs (printing, paper, binding, shipping) at $1.60 for each book produced. The book will be sold to distributors for $12 each. Answer the following questions about this venture. What is the total profit if Jesaki Publishing breaks even? $ . Round to the nearest dollar.