Suppose a management accountant of a manufacturing company give you the following information: - At the...

 

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Suppose a management accountant of a manufacturing company give you the following information: - At the selling price of OMR 450 the quantity sold is 300 units per month. At the selling price of OMR 250 the quantity sold is 700 units per month. - The variable cost per unit is OMR 100. The fixed cost is OMR 300. Required: i. From the above information, formulate the price function (P= a-bQ), and the cost function (C = a +bQ) of this company. ii. Using the functions which you formulated, determine the following: a. Profit maximizing quantity. b. Profit-maximizing price. c. Maximum profit value. d. Revenue-maximizing quantity. Suppose a management accountant of a manufacturing company give you the following information: - At the selling price of OMR 450 the quantity sold is 300 units per month. At the selling price of OMR 250 the quantity sold is 700 units per month. - The variable cost per unit is OMR 100. The fixed cost is OMR 300. Required: i. From the above information, formulate the price function (P= a-bQ), and the cost function (C = a +bQ) of this company. ii. Using the functions which you formulated, determine the following: a. Profit maximizing quantity. b. Profit-maximizing price. c. Maximum profit value. d. Revenue-maximizing quantity.