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A fast-food restaurant has a cost of production C(x)=14x+133 and a revenue function R(x)=7x. When does the company start to turn a profit?
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- For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…A small company manufactures a certain item and sells it online. The company has a business model where the cost, C in dollars, to make x items is given by the equation C = 20/3 x + 50. The revenue R , in dollars , made by selling x items is given by the equation R = 10x. How many items must the company sell in order for the cost to equal their revenue?The data below relate to a small service business. The business delivers a standard service to all customers. (Enter your answer as an integer number.) Fixed costs Variable cost per service £500.000 165 253 Selling price per service How many services need to be provided to make a profit of £142,000 for the business? Enter your answer below. The number of services to make the required profit is •
- (a) if Polymerco's production is running at 84% capacity, what is the maximum discount in percentage that you can provide? Maximum discount= in % In this case, will you have a negative impact on the profitability of the business? (yes or no) (b) if Polymerco's production is running at 100% capacity, how much percentage of discount can you provide without reducing the profitability? (in %)Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fansA restaurant has fixed costs of $148.75 per day and an average unit cost of $5.75 for each meal served. If a typical meal costs $7, how many customers must eat at the restaurant each day for the owner to break even? a) What is the COST equation for the given information using x as the unknown meals that customers consume? b) What is the REVENUE equation for the given information using x as the unknown meals that customers consume? c) What is the equation that defines Break-Even? d) How many customers must eat at the restaurant each day for the owner to Break-Even?
- How I can resolve this problem. The management of a firm wants to introduce a new product. the product will sell for $4 a unit and can be produced by either of two scales of operation. in the first, total cost are. TC= $3,000 +$2.8Q In the second scale of operation, total cost are TC=$5,000+$2.04Q a. what is the break-even level of outpur for each scale of operation? b. what will be the firm;s profit for each scale of operation if sales reach 5,000 units? c. one-half of the fixed cost are noncash(depreciation) . all other expenses are for cash. if sale are 2,000 units, will cash receipts cover cash expenses for each scale of operation? d. the anticipaded levels of sales are the following: Year Unit Sales 1 4,000 2 5000 3 6,000 4 7,000 If management selects the scale of production which higher fixed cost, what can it expect…Which of the following statements is false? a. As business volume increases, fixed cost per unit decreases. b. In the hotel and restaurant business, a sale is the exchange products or services for value. c. Fixed costs change with volume of sales. d. Sales may be expressed in terms of the number of units sold. How much were the sales in November 2022 in Burnaby Hideaway restaurant if the Cost of Sales was $46,500, the Cost of Labor was $33,247, the fixed costs totaled $65,883, and the restaurant experienced loss of $2,129? a. $145,630 b. $143,501 c. $143,501 d. $158,759 Which of the following statements is true? a. Restaurant recipes show food, beverage, labor and other total costs. b. A restaurant income statement shows total food, and if alcoholic beverages are served, total beverage costs and other total costs. c. A restaurant’s income statement includes both, unit and total costs. d. In a restaurant that serves alcoholic beverages, total costs are only the costs of…Given the following, solve the independent questions using the CVP analysis. Selling Price = 30 Variable Cost per Unit = 20 Total Fixed Cost = 60,000REQUIRED: 1 Find the following functions: • Total Revenue = [TR] • Total Variable Cost = [TVC] • Total Cost = [TC] • Total Profit = [TP] 2 What is the volume of production for the business firm not to incur any profit nor loss? 3 At zero quantity of production, how much is the total cost? 4 What is the volume of production if the company wants to earn 100,000 profit?
- Imagine that you could increase the price for a product that has a profit margin of 8% on its price. If you could increase the price by 1% AND simultaneously keep the sales volume (in unit terms) at the same level as before the price increase, calculate the impact of this price increase on the profit margin. (For this question, assume there are no fixed costs. You just need to calculate the PERCENTAGE CHANGE in profit margin)A firm has the following total revenue and total cost schedules: TR = $2Q. TC = $3,500 + $1.6Q. What is the break-even level of output? Round your answer to the nearest whole number. units What is the level of profits at sales of 9,500 units? Round your answer to the nearest dollar. $ As the result of a major technological breakthrough, the total cost schedule is changed to: TC = $6,500 + $0.5Q. What is the break-even level of output? Round your answer to the nearest whole number. units What is the level of profits at sales of 9,500 units? Round your answer to the nearest dollar. $A company produces and sells a product. The company has found that the costto produce x units of the product is given by C(x) = 50x + 200 (in dollars),and the revenue from selling x units is given by R(x) = 100x - x? (in dollars).What is the number of units the company should produce and sell to maximize profit
