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: Cengage Learning
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Chapter B, Problem 4E
To determine
To differentiate
To determine
To differentiate
To determine
To differentiate
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A small company produces organic cookies. When the price is $6 per dozen, the average daily sales has been 72 dozen cookies. When the price was decreased to $3 per dozen, the average daily sales increased to 110 dozen cookies. Assume that daily cookie sales is linearly related to price per dozen. Each dozen cookies has a variable cost of 87 cents to make, plus additional daily fixed costs of $84.
Find a function that models the daily profit in terms of the sales x in dozens of cookies.
A company has determined that its prodor for a product can be described by linear function. The profit from the production and sales of the 150 units is $455, and the profit from 250 units is $895
1. What is the average rate of change of the profit for the product when between 150 and 250 units are sold?
2. Write the equation of the profit function for this product?
3. How many units give break-even for this product?
Complete all of the following definitions
Chapter B Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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