1. You are hired as a business consultant of a firm that manufactures radios and sells them for Php 200.00 each. The fixed costs incurred in the production and sale of the radios is Php 200,000.00 plus a variable cost of Php 50.00 for each radio produced and sold. Let x be the number of units produced and sold. You are tasked to determine the following: a. The total cost for a business which is the sum of the fixed costs and the variable cost. Write the total cost C as a function of the number of units produced. b. Write the review R as a function of the number of units sold. c. Write the profit P as a function of the number of units sold, where P = R – C d. How much profit will the firm gets if the number of the radios sold is 500 units? Assume that units sold and produced are equal.
1. You are hired as a business consultant of a firm that manufactures radios and sells them for Php 200.00 each. The fixed costs incurred in the production and sale of the radios is Php 200,000.00 plus a variable cost of Php 50.00 for each radio produced and sold. Let x be the number of units produced and sold. You are tasked to determine the following: a. The total cost for a business which is the sum of the fixed costs and the variable cost. Write the total cost C as a function of the number of units produced. b. Write the review R as a function of the number of units sold. c. Write the profit P as a function of the number of units sold, where P = R – C d. How much profit will the firm gets if the number of the radios sold is 500 units? Assume that units sold and produced are equal.
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 3MC
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