Marginal Profit 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 301 at a price of $13 per toaster • a weekly demand of 192 at a price of $16 per toaster The financial department estimates that weekly fixed costs will be $1,393 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 270 toasters per week. Round to the nearest cent. $_ per toaster

Marginal Profit 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 301 at a price of $13 per toaster • a weekly demand of 192 at a price of $16 per toaster The financial department estimates that weekly fixed costs will be $1,393 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 270 toasters per week. Round to the nearest cent. $_ per toaster

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.5IP

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Marginal Profit 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 313 at a price of $13 per toaster • a weekly demand of 202 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,379 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. $ per toaster
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