Question: Please answer below question The fixed cost is 2500 RO per month, and the unit variable cost is 0.45 RO for producing a plastic part.

 Please answer below question The fixed cost is 2500 RO per

Please answer below question

month, and the unit variable cost is 0.45 RO for producing a

The fixed cost is 2500 RO per month, and the unit variable cost is 0.45 RO for producing a plastic part. The relation between the demand and the selling price is given as D=(144 p)/0.6. The maximum output of the plant is 200 units per month. a) Determine the optimum production quantity for this product? (9 pts) b) What is the maximum profit per month? (5 pts) c) At what volume does breakeven occur? (8 pts) d) What is the company's range of profitable demand? (3 pts)

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 Economics Questions!