Question: SupposCreate a e KB Design decides to change its pricing strategy: KB Design now prices to maximize profit margin.I was to add a new column
SupposCreate a e KB Design decides to change its pricing strategy: KB Design now prices to maximize profit margin.I was to add a new column in your spreadsheet showing the profit margin at each output level. This column is labeled as "Profit margin." (Class Book is managerial economics by christopher thomas)
Please check my PROFIT MARGIN
| Output/week | Total Variable Cost | Total Fixed Cost | Total Cost | Average Variable Cost | Average Fixed Cost | Average Total Cost | Short-run Marginal Cost | AVC - SMC | ATC - SMC | Price | Total Revenue | Total Marginal Revenue | Total Profit | Profit Margin | New Fixed Cost for Question K | New Total Cost for Question K | New Total Profit for Question K | ||
| 0 | $- | $3,500 | $3,500 | xx | 0 | 0 | ($3,500) | 7625 | 7625.00 | -7625.00 | |||||||||
| 10 | $485.30 | $3,500 | $3,985.30 | $48.53 | $350 | $398.53 | $48.00 | $0.53 | $350.53 | 99.50 | 995 | 99.5 | $(2,990.30) | ($39.05) | 7625 | 8110.30 | -7115.30 | ||
| 20 | $942.40 | $3,500 | $4,442.40 | $47.12 | $175 | $222.12 | $45.00 | $2.12 | $177.12 | 99.00 | 1980 | 98.5 | $(2,462.40) | ($43.87) | 7625 | 8567.40 | -6587.40 | ||
| 30 | $1,373.10 | $3,500 | $4,873.10 | $45.77 | $117 | $162.44 | $43.00 | $2.77 | $119.44 | 98.50 | 2955 | 97.5 | -1918.1 | ($48.47) | 7625 | 8998.10 | -6043.10 | ||
| 40 | $1,779.20 | $3,500 | $5,279.20 | $44.48 | $88 | $131.98 | $40.00 | $4.48 | $91.98 | 98.00 | 3920 | 96.5 | -1359.2 | ($52.87) | 7625 | 9404.20 | -5484.20 | ||
| 50 | $2,162.50 | $3,500 | $5,662.50 | $43.25 | $70 | $113.25 | $38.00 | $5.25 | $75.25 | 97.50 | 4875 | 95.5 | -787.5 | ($57.08) | 7625 | 9787.50 | -4912.50 | ||
| 60 | $2,524.80 | $3,500 | $6,024.80 | $42.08 | $58 | $100.41 | $36.00 | $6.08 | $64.41 | 97.00 | 5820 | 94.5 | -204.8 | ($61.11) | 7625 | 10149.80 | -4329.80 | ||
| 70 | $2,867.90 | $3,500 | $6,367.90 | $40.97 | $50 | $90.97 | $34.00 | $6.97 | $56.97 | 96.50 | 6755 | 93.5 | 387.1 | ($64.99) | 7625 | 10492.90 | -3737.90 | ||
| 80 | $3,193.60 | $3,500 | $6,693.60 | $39.92 | $44 | $83.67 | $32.00 | $7.92 | $51.67 | 96.00 | 7680 | 92.5 | 986.4 | ($68.73) | 7625 | 10818.60 | -3138.60 | ||
| 90 | $3,503.70 | $3,500 | $7,003.70 | $38.93 | $39 | $77.82 | $31.00 | $7.93 | $46.82 | 95.50 | 8595 | 91.5 | 1591.3 | ($72.34) | 7625 | 11128.70 | -2533.70 | ||
| 100 | $3,800.00 | $3,500 | $7,300.00 | $38.00 | $35 | $73.00 | $29.00 | $9.00 | $44.00 | 95.00 | 9500 | 90.5 | 2200 | ($75.84) | 7625 | 11425.00 | -1925.00 | ||
| 110 | $4,084.30 | $3,500 | $7,584.30 | $37.13 | $32 | $68.95 | $28.00 | $9.13 | $40.95 | 94.50 | 10395 | 89.5 | 2810.7 | ($79.26) | 7625 | 11709.30 | -1314.30 | ||
| 120 | $4,358.40 | $3,500 | $7,858.40 | $36.32 | $29 | $65.49 | $27.00 | $9.32 | $38.49 | 94.00 | 11280 | 88.5 | 3421.6 | ($82.60) | 7625 | 11983.40 | -703.40 | ||
| 130 | $4,624.10 | $3,500 | $8,124.10 | $35.57 | $27 | $62.49 | $26.00 | $9.57 | $36.49 | 93.50 | 12155 | 87.5 | 4030.9 | ($85.89) | 7625 | 12249.10 | -94.10 | ||
| 140 | $4,883.20 | $3,500 | $8,383.20 | $34.88 | $25 | $59.88 | $25.00 | $9.88 | $34.88 | 93.00 | 13020 | 86.5 | 4636.8 | ($89.14) | 7625 | 12508.20 | 511.80 | ||
| 150 | $5,137.50 | $3,500 | $8,637.50 | $34.25 | $23 | $57.58 | $25.00 | $9.25 | $32.58 | 92.50 | 13875 | 85.5 | 5237.5 | ($92.38) | 7625 | 12762.50 | 1112.50 | ||
| 160 | $5,388.80 | $3,500 | $8,888.80 | $33.68 | $22 | $55.56 | $25.00 | $8.68 | $30.56 | 92.00 | 14720 | 84.5 | 5831.2 | ($95.62) | 7625 | 13013.80 | 1706.20 | ||
| 170 | $5,638.90 | $3,500 | $9,138.90 | $33.17 | $21 | $53.76 | $25.00 | $8.17 | $28.76 | 91.50 | 15555 | 83.5 | 6416.1 | ($98.88) | 7625 | 13263.90 | 2291.10 | ||
| 180 | $5,889.60 | $3,500 | $9,389.60 | $32.72 | $19 | $52.16 | $25.00 | $7.72 | $27.16 | 91.00 | 16380 | 82.5 | 6990.4 | ($102.18) | 7625 | 13514.60 | 2865.40 | ||
| 190 | $6,142.70 | $3,500 | $9,642.70 | $32.33 | $18 | $50.75 | $25.00 | $7.33 | $25.75 | 90.50 | 17195 | 81.5 | 7552.3 | ($105.55) | 7625 | 13767.70 | 3427.30 | ||
| 200 | $6,400.00 | $3,500 | $9,900.00 | $32.00 | $18 | $49.50 | $25.00 | $7.00 | $24.50 | 90.00 | 18000 | 80.5 | 8100 | ($109.00) | 7625 | 14025.00 | 3975.00 | ||
| 210 | $6,663.30 | $3,500 | $10,163.30 | $31.73 | $17 | $48.40 | $26.00 | $5.73 | $22.40 | 89.50 | 18795 | 79.5 | 8631.7 | ($112.56) | 7625 | 14288.30 | 4506.70 | ||
| 220 | $6,934.40 | $3,500 | $10,434.40 | $31.52 | $16 | $47.43 | $27.00 | $4.52 | $20.43 | 89.00 | 19580 | 78.5 | 9145.6 | ($116.24) | 7625 | 14559.40 | 5020.60 | ||
| 230 | $7,215.10 | $3,500 | $10,715.10 | $31.37 | $15 | $46.59 | $28.00 | $3.37 | $18.59 | 88.50 | 20355 | 77.5 | 9639.9 | ($120.07) | 7625 | 14840.10 | 5514.90 | ||
| 240 | $7,507.20 | $3,500 | $11,007.20 | $31.28 | $15 | $45.86 | $29.00 | $2.28 | $16.86 | 88.00 | 21120 | 76.5 | 10112.8 | ($124.08) | 7625 | 15132.20 | 5987.80 | ||
| 250 | $7,812.50 | $3,500 | $11,312.50 | $31.25 | $14 | $45.25 | $30.00 | $1.25 | $15.25 | 87.50 | 21875 | 75.5 | 10562.5 | ($128.29) | 7625 | 15437.50 | 6437.50 | ||
| 260 | $8,132.80 | $3,500 | $11,632.80 | $31.28 | $13 | $44.74 | $32.00 | $(0.72) | $12.74 | 87.00 | 22620 | 74.5 | 10987.2 | ($132.71) | 7625 | 15757.80 | 6862.20 | ||
| 270 | $8,469.90 | $3,500 | $11,969.90 | $31.37 | $13 | $44.33 | $33.00 | $(1.63) | $11.33 | 86.50 | 23355 | 73.5 | 11385.1 | ($137.38) | 7625 | 16094.90 | 7260.10 | ||
| 280 | $8,825.60 | $3,500 | $12,325.60 | $31.52 | $13 | $44.02 | $35.00 | $(3.48) | $9.02 | 86.00 | 24080 | 72.5 | 11754.4 | ($142.32) | 7625 | 16450.60 | 7629.40 | ||
| 290 | $9,201.70 | $3,500 | $12,701.70 | $31.73 | $12 | $43.80 | $37.00 | $(5.27) | $6.80 | 85.50 | 24795 | 71.5 | 12093.3 | ($147.56) | 7625 | 16826.70 | 7968.30 | ||
| 300 | $9,600.00 | $3,500 | $13,100.00 | $32.00 | $12 | $43.67 | $39.00 | $(7.00) | $4.67 | 85.00 | 25500 | 70.5 | 12400 | ($153.12) | 7625 | 17225.00 | 8275.00 | ||
| 310 | $10,022.30 | $3,500 | $13,522.30 | $32.33 | $11 | $43.62 | $42.00 | $(9.67) | $1.62 | 84.50 | 26195 | 69.5 | 12672.7 | ($159.03) | 7625 | 17647.30 | 8547.70 | ||
| 320 | $10,470.40 | $3,500 | $13,970.40 | $32.72 | $11 | $43.66 | $44.00 | $(11.28) | $(0.34) | 84.00 | 26880 | 68.5 | 12909.6 | ($165.31) | 7625 | 18095.40 | 8784.60 | ||
| 330 | $10,946.10 | $3,500 | $14,446.10 | $33.17 | $11 | $43.78 | $47.00 | $(13.83) | $(3.22) | 83.50 | 27555 | 67.5 | 13108.9 | ($172.01) | 7625 | 18571.10 | 8983.90 | ||
| 340 | $11,451.20 | $3,500 | $14,951.20 | $33.68 | $10 | $43.97 | $50.00 | $(16.32) | $(6.03) | 83.00 | 28220 | 66.5 | 13268.8 | ($179.13) | 7625 | 19076.20 | 9143.80 | ||
| 350 | $11,987.50 | $3,500 | $15,487.50 | $34.25 | $10 | $44.25 | $53.00 | $(18.75) | $(8.75) | 82.50 | 28875 | 65.5 | 13387.5 | ($186.73) | 7625 | 19612.50 | 9262.50 | ||
| 360 | $12,556.80 | $3,500 | $16,056.80 | $34.88 | $10 | $44.60 | $56.00 | $(21.12) | $(11.40) | 82.00 | 29520 | 64.5 | 13463.2 | ($194.81) | 7625 | 20181.80 | 9338.20 | ||
| 370 | $13,160.90 | $3,500 | $16,660.90 | $35.57 | $9 | $45.03 | $60.00 | $(24.43) | $(14.97) | 81.50 | 30155 | 63.5 | 13494.1 | ($203.43) | 7625 | 20785.90 | 9369.10 | ||
| 380 | $13,801.60 | $3,500 | $17,301.60 | $36.32 | $9 | $45.53 | $64.00 | $(27.68) | $(18.47) | 81.00 | 30780 | 62.5 | 13478.4 | ($212.60) | 7625 | 21426.60 | 9353.40 | ||
| 390 | $14,480.70 | $3,500 | $17,980.70 | $37.13 | $9 | $46.10 | $67.00 | $(29.87) | $(20.90) | 80.50 | 31395 | 61.5 | 13414.3 | ($222.36) | 7625 | 22105.70 | 9289.30 | ||
| 400 | $15,200.00 | $3,500 | $18,700.00 | $38.00 | $9 | $46.75 | $71.00 | $(33.00) | $(24.25) | 80.00 | 32000 | 60.5 | 13300 | ($232.75) | 7625 | 22825.00 | 9175.00 | ||
| 410 | $15,961.30 | $3,500 | $19,461.30 | $38.93 | $9 | $47.47 | $76.00 | $(37.07) | $(28.53) | 79.50 | 32595 | 59.5 | 13133.7 | ($243.80) | 7625 | 23586.30 | 9008.70 | ||
| 420 | $16,766.40 | $3,500 | $20,266.40 | $39.92 | $8 | $48.25 | $80.00 | $(40.08) | $(31.75) | 79.00 | 33180 | 58.5 | 12913.6 | ($255.54) | 7625 | 24391.40 | 8788.60 | ||
| 430 | $17,617.10 | $3,500 | $21,117.10 | $40.97 | $8 | $49.11 | $85.00 | $(44.03) | $(35.89) | 78.50 | 33755 | 57.5 | 12637.9 | ($268.01) | 7625 | 25242.10 | 8512.90 | ||
| 440 | $18,515.20 | $3,500 | $22,015.20 | $42.08 | $8 | $50.03 | $89.00 | $(46.92) | $(38.97) | 78.00 | 34320 | 56.5 | 12304.8 | ($281.25) | 7625 | 26140.20 | 8179.80 | ||
| 450 | $19,462.50 | $3,500 | $22,962.50 | $43.25 | $8 | $51.03 | $94.00 | $(50.75) | $(42.97) | 77.50 | 34875 | 55.5 | 11912.5 | ($295.29) | 7625 | 27087.50 | 7787.50 | ||
| 460 | $20,460.80 | $3,500 | $23,960.80 | $44.48 | $8 | $52.09 | $99.00 | $(54.52) | $(46.91) | 77.00 | 35420 | 54.5 | 11459.2 | ($310.18) | 7625 | 28085.80 | 7334.20 | ||
| 470 | $21,511.90 | $3,500 | $25,011.90 | $45.77 | $7 | $53.22 | $105.00 | $(59.23) | $(51.78) | 76.50 | 35955 | 53.5 | 10943.1 | ($325.95) | 7625 | 29136.90 | 6818.10 | ||
| 480 | $22,617.60 | $3,500 | $26,117.60 | $47.12 | $7 | $54.41 | $110.00 | $(62.88) | $(55.59) | 76.00 | 36480 | 52.5 | 10362.4 | ($342.65) | 7625 | 30242.60 | 6237.40 | ||
| 490 | $23,779.70 | $3,500 | $27,279.70 | $48.53 | $7 | $55.67 | $116.00 | $(67.47) | $(60.33) | 75.50 | 36995 | 51.5 | 9715.3 | ($360.32) | 7625 | 31404.70 | 5590.30 | ||
| 500 | $25,000.00 | $3,500 | $28,500.00 | $50.00 | $7 | $57.00 | $122.00 | $(72.00) | $(65.00) | 75.00 | 37500 | 50.5 | 9000 | ($379.00) | 7625 | 32625.00 | 4875.00 | ||
| $400,563 |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help