Question: A product may be made using Machine I or Machine II. The manufacturer estimates that the monthly fixed costs of using Machine I are $18,000,

A product may be made using Machine I or Machine II. The manufacturer estimates that the monthly fixed costs of using Machine I are $18,000, whereas the monthly fixed costs of using Machine II are $16,000. The variable costs of manufacturing 1 unit of the product using Machine I and Machine II are $14 and $20, respectively. The product sells for $60 each.

(a) Find the cost functions C(x) associated with using each machine, where x is the number of units produced using that machine.

Machine I	C₁(x)	=
Machine II	C₂(x)	=

(b) Sketch the graphs of the cost functions of part (a) and the revenue function on the same set of axes. (Sketch the graphs using rays.)

(d) What is the profit for each case in part (c)?

400 units	$
500 units	$
600 units	$

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

1. Find the break-even point for the firm whose cost function C and revenue function R are given. C ( x ) =150 x +30,000; R ( x ) =330 x ( x , y ) = 2. A division of a company produces income tax...

A product may be made using Machine I or Machine II. The manufacturer estimates that the monthly fixed costs of using Machine I are $17,000, whereas the monthly fixed costs of using Machine II are...

Need help 8. [6/9 Points] DETAILS PREVIOUS ANSWERS TANFIN 12 1.4.015. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER A product may be made using Machine I or Machine II. The manufacturer estimates that...

A product may be made using Machine I or Machine II. The manufacturer estimates that the monthly fixed costs of using Machine I are $19,000, whereas the monthly fixed costs of using Machine II are...

A product may be made using Machine I or Machine II . The manufacturer estimates that the monthly fixed costs of using Machine I are $ 2 0 , 0 0 0 , whereas the monthly fixed costs of using Machine...

A product may be made using machine I or machine II. The manufacturer estimates that the monthly fixed costs of using machine I are $18,000, whereas the monthly fixed costs of using machine II are...

A product may be made using Machine or Machine 11. The manufacturer estimates that the mothyfed cons of using Machinere $20,000, whereas the money and costs of using Machine 11 are $16,000. The...

PRINTABLE VERSION Practice Final Exam Question 1 Give the slope of the line passing through the points ( 2 , -5 ) and ( 2 , -3 ). a) b) c) d) e) f) None of the above. Question 2 Give the equation of...

Sample Midterm Work in one Excel file. Each task should be sold on a separate worksheet. Write all the answers into a Word file. You can insert the GeoGebra print screen images there as well. 1. A...

The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance December 31 Account Title Debit Credit Cash $ 17,000 Prepaid insurance 1,100 Notes receivable (due...

What is the 'project' cost of capital? How is it different from the corporate cost of capital? 2. Estimate the weighted cost of debt of the Thunderbird project under the assumption that (i) the...

Shani mixes two shades of blue paint in the following ratios of blue : white. a What fraction of each shade of blue paint is white? b Which shade of blue paint is lighter? Show all your working....

Create a C# application named SalesTransactionDemo that declares several SalesTransaction objects and displays their values and their sum. The SalesTransaction class contains the following fields:...