A manufacture of a new panted product has found that he can sell 70 units a...

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A manufacture of a new panted product has found that he can sell 70 units a week direct to the customer if the price is MWK48.00. In error the price was recently advertised at MWK78.00 and as a result, only 40 units were sold in a week. The manufacturers fixed costs are MWK1, 710.00 a week and variable costs are MWK 9.00 per unit. a) Show the price function is given by P =118 - x b) Find the breakeven points of manufacturer c) Recommend a unit price which would maximize profit d) Assuming a sudden change in trading conditions has resulted in 20% reduction in demand at all price levels. Find the new price function and recommend how the manufacture should respond? A manufacture of a new panted product has found that he can sell 70 units a week direct to the customer if the price is MWK48.00. In error the price was recently advertised at MWK78.00 and as a result, only 40 units were sold in a week. The manufacturers fixed costs are MWK1, 710.00 a week and variable costs are MWK 9.00 per unit. a) Show the price function is given by P =118 - x b) Find the breakeven points of manufacturer c) Recommend a unit price which would maximize profit d) Assuming a sudden change in trading conditions has resulted in 20% reduction in demand at all price levels. Find the new price function and recommend how the manufacture should respond?