Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: a weekly demand of 304 at a price of $13 per toaster a weekly demand of 194 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,362 and variable costs (cost per unit) will be $4. Assume: the relationship between price and demand is linear
Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: a weekly demand of 304 at a price of $13 per toaster a weekly demand of 194 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,362 and variable costs (cost per unit) will be $4. Assume: the relationship between price and demand is linear
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 9E
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Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates:
- a weekly
demand of 304 at a price of $13 per toaster - a weekly demand of 194 at a price of $17 per toaster
The financial department estimates that weekly fixed costs will be $1,362 and variable costs (cost per unit) will be $4.
Assume:
- the relationship between price and demand is linear
- the cost function in linear
Use your models to predict the marginal profit when Yaster is producing and selling 261 toasters per week. Round to the nearest cent.
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