Your University magazine, The Indus Magazine, has fixed production costs of Rs.1.5 million per edition, and printing and distribution costs of Rs.80/copy. The Indus Magazine sells for Rs.150/copy. (8 Marks) a. Write down the associated cost, revenue, and profit functions. b. What profit (or loss) results from the sale of 1000 copies of The Indus Magazine? c. How many copies should be sold in order to break even?
Your University magazine, The Indus Magazine, has fixed production costs of Rs.1.5 million per edition, and printing and distribution costs of Rs.80/copy. The Indus Magazine sells for Rs.150/copy. (8 Marks) a. Write down the associated cost, revenue, and profit functions. b. What profit (or loss) results from the sale of 1000 copies of The Indus Magazine? c. How many copies should be sold in order to break even?
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
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.1IP
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Your University magazine, The Indus Magazine, has fixed production costs of Rs.1.5 million per
edition, and printing and distribution costs of Rs.80/copy. The Indus Magazine sells for
Rs.150/copy. (8 Marks)
a. Write down the associated cost, revenue, and profit functions.
b. What profit (or loss) results from the sale of 1000 copies of The Indus Magazine?
c. How many copies should be sold in order to break even?
d. Sketch the cost, revenue, and profit functions.
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