The marketing department of a company has established that when the price of coffee is S6000...
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The marketing department of a company has established that when the price of coffee is S6000 per ton, they sell 2 tons of coffee, and when the price is $4500 per ton, they sell 3 tons of coffee. a. Assuming the price-demand function p(z) is linear, establish the variables p and z and sketch its graph. b. What is the price per kilogram of coffee if the company reaches its maximum production capacity of 5 tons? c. What is the corresponding revenue function R(z)? d. How many tons of coffee must the company produce, and at what price per ton does the company have to sell it in order to reach its maximum revenue? e. If the company has fixed costs of $7000.00 and cost analysis has established that the cost of selling 4 tons of coffee is $12,000.00, establish the variables C and r and give the cost linear function C(r). f. What is the cost to the company when maximum production is achieved? g. Give the corresponding profit function P(z). h. How many tons does the company need to produce in order to maximize its profit? Is the company capable of maximizing its profit? i What level of production would be unprofitable for the company? The marketing department of a company has established that when the price of coffee is S6000 per ton, they sell 2 tons of coffee, and when the price is $4500 per ton, they sell 3 tons of coffee. a. Assuming the price-demand function p(z) is linear, establish the variables p and z and sketch its graph. b. What is the price per kilogram of coffee if the company reaches its maximum production capacity of 5 tons? c. What is the corresponding revenue function R(z)? d. How many tons of coffee must the company produce, and at what price per ton does the company have to sell it in order to reach its maximum revenue? e. If the company has fixed costs of $7000.00 and cost analysis has established that the cost of selling 4 tons of coffee is $12,000.00, establish the variables C and r and give the cost linear function C(r). f. What is the cost to the company when maximum production is achieved? g. Give the corresponding profit function P(z). h. How many tons does the company need to produce in order to maximize its profit? Is the company capable of maximizing its profit? i What level of production would be unprofitable for the company?
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Let px represent the price per ton of coffee in dollars when x tons o... View the full answer
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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