XYZ manufacturing company a manufacturer of Scientific calculators. According to it records, costs that do not vary with the number of calculators, Q produced is $1200. Variable cost per unit of calculator produced is $2. The company’s maximum capacity is 1400 units. XYZ’s total revenue, TR function has been postulated as q TR=100 . (A) Q Specify the mathematical form of the total cost, TC function. (B) (C) (D) (E) Determine the break-even quantity algebraically. Graph the revenue and costs functions. Clearly indicate the portion of the graph where the company make losses or profits.
XYZ manufacturing company a manufacturer of Scientific calculators. According to it records, costs that do not vary with the number of calculators, Q produced is $1200. Variable cost per unit of calculator produced is $2. The company’s maximum capacity is 1400 units. XYZ’s total revenue, TR function has been postulated as q TR=100 . (A) Q Specify the mathematical form of the total cost, TC function. (B) (C) (D) (E) Determine the break-even quantity algebraically. Graph the revenue and costs functions. Clearly indicate the portion of the graph where the company make losses or profits. Calculate the total contribution margin, TCM at Q = 600. Comment on the value. Should XYZ produce the up to the maximum capacity? Explain?
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