Maxima and Minima in business A factory sells a product at price of (200.01x) in Peso per unit. The variable cost per unit is 10 pesos. The fixed cost of the factory is 1,000 pesos (a) Determine the total revenue (Rt), the total cost (Yc), and the profit function of the factory. (b) Find the number of units to be produced in order to break-even. (
Maxima and Minima in business A factory sells a product at price of (200.01x) in Peso per unit. The variable cost per unit is 10 pesos. The fixed cost of the factory is 1,000 pesos (a) Determine the total revenue (Rt), the total cost (Yc), and the profit function of the factory. (b) Find the number of units to be produced in order to break-even. (
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 5E
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Maxima and Minima in business
A factory sells a product at price of (200.01x) in Peso per unit. The variable cost per unit is 10 pesos. The fixed cost of the factory is 1,000 pesos
(a) Determine the total revenue (Rt), the total cost (Yc), and the profit function of the factory.
(b) Find the number of units to be produced in order to break-even.
(c) Find the total revenue that corresponds to the break-even point.
(d) Find the number of units to be produced in order to acquire maximum profit.
(e) Find the maximum profit.
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