Question 03 Evaluate the range of profitable demand for a new project by EWALL Pvt. Ltd. The variable cost (c,) per unit item of particular electronic component is $850, the intercept on price (a) is 4500 and negative slope (b) is 80 and the fixed costs (CF) sums up to $8,500 per month.
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- Suppose a company has fixed costs of $300 and variable costs of 3/4 x+1460 dollars per unit, where x is thetotal number of units produced. Suppose further that the selling price of its product is 1500−1/4 x dollars per unit.(a) Find the break-even points.(b) Find the maximum revenue.(c) Form the profit function from the cost and revenue functions and find maximum profit.(d) What price will maximize the profit?Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the “breakeven” level of x? (d) If you sell 1500 units this year, will you have a profit or loss? How much? (e) At 1500 units, what are your marginal and average costs?The total cost (in dollars) of manufacturing x auto body frames is C(x) = 80,000 + 900x. (A) Find the average cost per unit if 500 frames are produced. (B) Find the marginai average cost at a production level of 500 units. (C) Use the results from parts (A) and (B) to estimate the average cost per frame if 501 frames are produced. (A) If 500 frames are produced, the average cost is $per frame. (B) The marginal average cost at a production level of 500 units is $ (Round to the nearest cent as needed.) per frame. (C) Using the results from parts (A) and (B), the estimate of the average cost per frame if 501 frames are produced is $ (Round to the nearest cent as needed.)
- 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 pe unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers. X The demand for its product is p = 15 - 125 ,its production cost per unit is US$5.00 and its fixed cost are the same as for company A. (i) Derive the total revenue function, R(x) for company A. (ii) Derive the total cost function, C(x) for company A. (iii) Derive the profit function, II(x) for company A.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?A company has determined that the price and the monthly demand of one of its products are related by the equation D = √(400 − p), where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,125/month, and the variable costs are $100/unit. Use this information to answer What is the optimal number of units that should be produced and sold each month? (a) 10 units (b) 15 units (c) 20 units (d) 25 units. Select the closest answer.
- (1) The revenue for a product is R(x) = -0.004x? + 21x cost is C(x) = 0.02x + 38, for x units produced and sold. (a) Find the marginal profit for 2800 units. (b) Should output be increased or decreased to generate a higher profit? 6200 and theT/F The fixed cost remains same at all level of output.A company sells one of its products for $10.40 per unit. Its fixed costs are $1,560 per month, and the variable cost per unit is $3.90. (a) The break-even volume is the next whole number of units.) units per month. (If necessary, round up to (b) If the selling price decreases by $2.90, the new break-even volume will be units per month. (If necessary, round up to the next whole number of units.)
- The figure shows graphs of the total cost function and the total revenue function for a commodity. (Assume cost and revenue are measured in dollars.) میرے y 500 400 300 200 100 10 20 30 (a) Label each function correctly. function A | ---Select--- function B | ---Select--- (b) Determine the fixed costs. $ 40 50 A B 60 XWhen the production volume (Q)is(100)units the total costs (TC)is (1500)omani RIyals and fixed costs (900) Riyals so the Average Variable costs AVC will beA privately owned summer camp for youngsters has the following data for a 15- :weeksession Charge per camper $130 per week Fixed costs $42,000 per session Variable cost per camper $70 per week Сарacity 180 campers Develop the mathematical relationships for (a) .total cost and total revenue What is the total number of campers that (b) ?will allow the camp to just break even What is the profit or loss for the 12-week (c) ?session if the camp operates at 80% capacity