A company produces a product at a variable cost of $10. The company is interested in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company produces a product at a variable cost of $10. The company is interested in maximizing its contributions and profits. There are 5 potential customers each of who will buy 1 at the most. The maximum price that each customer is willing to pay for the product is given below: Customer Jane Paul Dave Bill Amy Willingness to Pay $20 $30 $40 $50 $60 QUESTIONS: 1. At what price should the company sell the product so as to maximize total contribution? 2. How much total contribution will the company make at that price? A company produces a product at a variable cost of $10. The company is interested in maximizing its contributions and profits. There are 5 potential customers each of who will buy 1 at the most. The maximum price that each customer is willing to pay for the product is given below: Customer Jane Paul Dave Bill Amy Willingness to Pay $20 $30 $40 $50 $60 QUESTIONS: 1. At what price should the company sell the product so as to maximize total contribution? 2. How much total contribution will the company make at that price?
Expert Answer:
Answer rating: 100% (QA)
1 Sell to Amy at 60 To maximize total contribution ... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
Posted Date:
Students also viewed these finance questions
-
Suggest improvements for the companys web-site and web presence. Read the following discussion: Pandora is the Internets most successful radio service. As of May 2014, it had over 250 million...
-
Read the following case study: Pandora is the Internets most successful radio service. As of May 2014, it had over 250 million registered users (200 million of which access the service via a mobile...
-
You measure 30 textbooks' weights, and find they have a mean weight of 72 ounces. Assume the population standard deviation is 4 ounces. Based on this, construct a 90% confidence interval for the true...
-
Calculate the torque produced by a 50-N perpendicular force at the end of a 0.2-m-long wrench.
-
Corn has been genetically engineered to produce the anti-insect poison of a bacterium Bacillus thuringiensis. What is one benefit of this? What are some of the risks?
-
With reference to Exercise 14.24, test for randomness with level 0.05 . Data From Exercise 14.24 14.24 The difference between the observed flux and the theo- retical value was observed at 20 points...
-
A man is riding on a flatcar traveling at a constant speed of 9.10 m/s (Fig. 3.54). He wishes to throw a ball through a stationary hoop 4.90 m above the height of his hands in such a manner that the...
-
mment T4075 As CIT-1075 (1%) Consider ment CCIT 1075 Assignmes m-1 n=0 Consider the dataset {9}-0 Assume m is a multiple of (a) (1%) Suppose 9 = cos(2/3). Estimate the pmf of the random variable...
-
Alan and Angel Young are both 36 years old. Mr. Young recently accepted a new job making $93,000 a year and Mrs. Young is currently unemployed. The Youngs have two children (ages 4 and 2), a dog, and...
-
The directors of Red Pink Sdn Bhd, a business which makes only one product, have been reviewing the following summarized profit and loss account for the quarter just ended. Sales (60,000 units)...
-
your grandfather charles is a widower. he received $2024 per month social security for all of 2019. his only other source of income is part time job at the local library. he receives a w-2 for $14100...
-
Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 was direct and $73,000 was indirect supervisory costs.What will be the...
-
Refer to the Harris-Todaro migration model. Assume that unemployment is possible and the manufacturing wage is fixed at M1. What is the urban labour pool?
-
If we find that some schools direct females away from science and math courses, we have evidence of
-
Joe's Bikes had sales totaling $259,023 last year. The cost of the goods sold was $169,401. Expenses totaled $68,037. What was the net profit margin for the year?
-
1.) A food scientist is attempting to determine the optimum temperature for a cooked turkey breast. She measures the temperature of the turkey breast using a meat thermometer (analog) to be 165F. The...
-
Compile data on consumption and expenditures for the following categories in 30 different countries: (1) food and beverages, (2) clothing and footwear, (3) housing and home operations, (4) household...
-
International Corp. (IC) is a large Canadian company that has operations around the world that are very diverse. In the past few years they have acquired a number of different companies in a variety...
-
I cannot believe you have advised against an employee bonus this year, exclaimed Jessica Simpson, senior accountant of Glowworm Inc. (GI), as she stormed into the office of the GI chief financial...
-
Shawinegan Development Co. (SDC) conducts research and development on specific projects under contract for clients; SDC also conducts basic research and attempts to market any new products or...
-
The following is the distribution of the hourly number of trucks arriving at a company's warehouse: Find the mean of this distribution, and using it (rounded to one decimal place) as the parameter...
-
With reference to Exercise 10.42, verify that the mean of the observed distribution is 1.6 , corresponding to \(40 \%\) of the cars requiring repairs. Then look up the probabilities for \(n=5\) and...
-
Among 100 purification filters used in an experiment, 46 had a service life of less than 20 hours, 19 had a service life of 20 or more but less than 40 hours, 17 had a service life of 40 or more but...
Study smarter with the SolutionInn App