Many times the selling price of a product p, is related to demand D, according to...
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Many times the selling price of a product p, is related to demand D, according to the relationship p-a-bD. However, a company has found that the price of their product can be related to demand (in units per year) according to the following equation: p=108.5 2.08D0.75. In addition, there is a fixed cost of P50,000 per year and the variable cost to manufacture the product is P68 per unit. What is the level of demand which maximizes sales? What is the maximum sales? What level of demand maximizes profit? What is the maximum profit? What are the breakeven quantities of this product if p=678.39-1.08D? Many times the selling price of a product p, is related to demand D, according to the relationship p-a-bD. However, a company has found that the price of their product can be related to demand (in units per year) according to the following equation: p=108.5 2.08D0.75. In addition, there is a fixed cost of P50,000 per year and the variable cost to manufacture the product is P68 per unit. What is the level of demand which maximizes sales? What is the maximum sales? What level of demand maximizes profit? What is the maximum profit? What are the breakeven quantities of this product if p=678.39-1.08D?
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1 The level of demand that maximizes sales is when P 0 or when D 54425 units per year The maximum sa... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111971724
9th edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
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