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- 1. A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $600,000 per month. The variable cost per thousand board feet is $125.50. The price charged will be determined byp = $550 – (0.4)D per 1.00 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume. b. What is the domain of profitable demand during a month?The Asian Transmission Co. makes and sell automotive parts. Present sales volume is 50,000 units a year and selling price is P50.00 per unit. Fixed expenses is P180,000.00 per year and variable cost per unit is P35.00. What is the total profit / loss for the year if only 10,000 are sold? a. P30k b. P30k c. P70k d. P570kProfit Analysis Unendo, is a large computer game manufacturer. They have estimated that the demand function for their game "Star Wars Battlefront III" is as follows... STAR WARE BATTLEFRONT p = 86 - 0.05q where p is the price of a game and q is the number of game produced and sold per week. They estimate that their cost function in dollars is ... Clq) = 179 + 5000; where the fixed cost is $5000 and the marginal cost is $17 per game Unendo wishes to maximize the weekly profit of producing and selling the game. Find the maximum profit they can earn. (Round your answer to 2 decimal places, if necessary)
- ВЕР The world price of Zinc has increased to the point where "moth balled" zinc mines in East Tennessee have been reopened because of their potential profitability. a. What is the breakeven point when zinc sells for $1.00 per pound? There are variable costs of $30 million at 100% capacity (20,000 tons) and fixed costs of $7 million per year. b. What is the estimated annual profit for a mine producing 20,000 tons per year (which is 100% capacity)? c. If production is only 15,000 tons per year, will the mine be profitable? What is the profit or loss at this production level? Note: 1 ton = 2,000 poundsThe period of time required for the project's profit or other benefits to equal the project's cost is the payback period. O True FalseThe Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost perbarrel is $16. Price is related to demand according to the following linear equation.v -75,000 1,153.8pDevelop the nonlinear profit function for the brewery and determine the price that will max-imize profit, the optimal volume, and the maximum profit per year.
- Pixie Arts and Graphics, a medium scale printing press business has determined the equation that describes the relationship of the price and demand of one of its products as Price=150 - 0.01•D (D as Demand per unit) for an annual printing of this product. The fixed costs annually = P50,000 and the variable cost = P40 per unit. Requirement: a. What is the maximum profit that can be earned? b. What is the unit price at this point of optimal demand if demand is not to be anticipated to exceed more than 6,000 units annually? Hint: Profit (loss) = total revenue – total costs = (aD – bD²) – (Cf + CyD)AVX makes and sells a single product Z. The selling price and marginal revenue equations for product Z are as follows: Selling price- 230o-0.025x Marginal revenue - 230-0.05x The variable costs are E40 per unit and the fixed costs are £135,000. If the selling price was set to maximise revenue, calculate the resulting profit. Please type your answer (including your workings) in the box below. Please use the arrow keys on your keyboard to scroll up and down within the text box (as using the mouse may not work).Your college newspaper. The Collegiate Investigator, has fixed production costs of $70 per edition, and margınal printıng and distribution costs of 0.40 S/copy. The Collegiate Investigato sells for 0.50S/copy. a) Write down the cost function and revenue.
- 1. A chemical company produces sodium bisulfate in 100-pound bags. Demand for the product is 40 tons per day. The capacity for production is 80 tons per day. Setup cost is $140, and storage and handling costs are $15 per ton per year, and company incurs fixed cost of $10,000, the firm operates 250 days per year. (Note: 1 ton = 1,000 kilo grams)Required:a. What is the annual demand in tons?b. What is the economic production quantity of the company?c. What is the average fixed cost of producing 20,000 tones?d. What is the variable cost of producing 20,000 tones?Your University magazine, The Indus Magazine, has fixed production costs of Rs.1.5 million peredition, and printing and distribution costs of Rs.80/copy. The Indus Magazine sells forRs.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.620 In the following demand and cost functions & is selling ponce ad Qis quantity in the Thousand P = 30-29 Tc = Q +5Q-30 0,570 what is the optimal prices maximize profits? to 48,000 wer is incorrect. rect answer is: