Question: A retail store sells a product that has a variable cost of $ ( 3 + n ) a unit with n in the interval
A retail store sells a product that has a variable cost of $n a unit with n in the interval ;
Fixed costs are $p per month with p in the interval ; The store manager estimates that if the price is set at $ a unit, the sales volume will be x units per month with denoting the selling price.
What will be the sales volume if the retailer sets the selling price times at $n n being a value that you choose according to the instruction above defined earlier? Which price should be set for the retailer to sell units?
After presenting the related equations, draw, on the same diagram, the lines or curves of
i demand curve, il total revenue, ili total cost and iv profits all as functions of the output Do not forget to provide the scales used.
Find the breakeven quantity when the selling prices are $ and $ respectively. Which price is the most attractive to the manager? Justify your answer.
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