If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15-x/ 125, its production cost per unit is US$5.00 and its fixed cost are the same as for company A . How many t-shirts must company B sell to maximise its profit?
If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15-x/ 125, its production cost per unit is US$5.00 and its fixed cost are the same as for company A . How many t-shirts must company B sell to maximise its profit?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15-x/ 125, its production cost per unit is US$5.00 and its fixed cost are the same as for company A .
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How many t-shirts must company B sell to maximise its profit?
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