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Pritta Consulting is a firm of consultants which operates in Argentina. An analysis of its monthly operating costs indicates that it has average variable costs given by: AVC = 952 -0.048Q where AVC is in $ and Q is the number of services provided. Fixed costs are estimated at 36.000 $ per month. Pritta Consulting charges a fee of 800 $ for each service, and 20 per cent of this is paid to its consultants. Calculate the volume of services that must be sold to make a profit of 60.000 $ per month.

Pritta Consulting is a firm of consultants which operates in Argentina. An analysis of its monthly operating costs indicates that it has average variable costs given by: AVC = 952 -0.048Q where AVC is in $ and Q is the number of services provided. Fixed costs are estimated at 36.000 $ per month. Pritta Consulting charges a fee of 800 $ for each service, and 20 per cent of this is paid to its consultants. Calculate the volume of services that must be sold to make a profit of 60.000 $ per month.

Survey Of Economics
Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Pritta Consulting is a firm of consultants which operates in Argentina. An analysis of its monthly operating costs indicates that it has average variable costs given by: AVC=952 -0.048Q where AVC is in $ and Q is the number of services provided. Fixed costs are estimated at 36.000 $ per month. Pritta Consulting charges a fee of 800 $ for each service, and 20 per cent of this is paid to its consultants. Calculate the volume of services that must be sold to make a profit of 60.000 $ per month.
Transcribed Image Text:Pritta Consulting is a firm of consultants which operates in Argentina. An analysis of its monthly operating costs indicates that it has average variable costs given by: AVC=952 -0.048Q where AVC is in $ and Q is the number of services provided. Fixed costs are estimated at 36.000 $ per month. Pritta Consulting charges a fee of 800 $ for each service, and 20 per cent of this is paid to its consultants. Calculate the volume of services that must be sold to make a profit of 60.000 $ per month.
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