A manufacturer of microcomputers produces three different models. The following table summarizes wholesale prices, material cost per unit, and labor cost per unit. Annual fixed costs are $30 million.                                                                                                                                 (7)

Wholesale price/unit Material cost /unit Labor cost/unit	Microcomputer
	Model 1	Model 2	Model 3
	$ 1000	$ 16,00	$ 13,000
	180	1200	1080
	200	280	255

• Determine a joint total revenue function for sales of the three different microcomputer models.
• Determine an annual total cost function for manufacturing the three models.
• Determine the profit functions if the firm sells of three models.

 What is annual profit if the firm sells 60,000, 80,000, 20,000 units respectively of three models?

Answer rating: 100% (QA)

Let X be number of units of Model 1 Y the number of units of model 2 and Z be ... View the full answer