ABC pic is about to launch a new product. Facilities will allow the company to produce...
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ABC pic is about to launch a new product. Facilities will allow the company to produce up to 20 units per week. The marketing department has estimated that at a price of P8,000 no units will be sold, but for each P150 reduction in price one additional unit per week will be sold. Fixed costs associated with manufacture are expected to be P12,000 per week. Variable costs are expected to be P4,000 per unit for each of the first 10 units; thereafter each unit will cost P400 more than the preceding one. The most profitable level of output per week for the new product is ABC pic is about to launch a new product. Facilities will allow the company to produce up to 20 units per week. The marketing department has estimated that at a price of P8,000 no units will be sold, but for each P150 reduction in price one additional unit per week will be sold. Fixed costs associated with manufacture are expected to be P12,000 per week. Variable costs are expected to be P4,000 per unit for each of the first 10 units; thereafter each unit will cost P400 more than the preceding one. The most profitable level of output per week for the new product is
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