Question: Problem 1: A Company has established that the relationship between the sales price for one of its products and the quantity sold per month is
Problem 1: A Company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately D-780-10p units (D is the demand or quantity sold per month, and p is the price in dollars). The fixed cost is $800 per month, and the variable cost is $30 dollars per unit produced. a) At what quantity of sales (D) is the total revenue maximized? b) Shoiw in part (a) that the total revenues have been maximized rather than minimized. c) What optimal number of units, D', should be produced per month and sold to maximize the net profit? d) What is the maximum profit per month? e) What are the breakeven sales quantities (Di and Da) per month
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