A company produces a product at a variable cost of $10. The company is interested in...
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A company produces a product at a variable cost of $10. The company is interested in maximizing its contributions and profits. There are 5 potential customers each of who will buy 1 at the most. The maximum price that each customer is willing to pay for the product is given below: Customer Jane Paul Dave Bill Amy Willingness to Pay $20 $30 $40 $50 $60 QUESTIONS: 1. At what price should the company sell the product so as to maximize total contribution? 2. How much total contribution will the company make at that price? A company produces a product at a variable cost of $10. The company is interested in maximizing its contributions and profits. There are 5 potential customers each of who will buy 1 at the most. The maximum price that each customer is willing to pay for the product is given below: Customer Jane Paul Dave Bill Amy Willingness to Pay $20 $30 $40 $50 $60 QUESTIONS: 1. At what price should the company sell the product so as to maximize total contribution? 2. How much total contribution will the company make at that price?
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Answer rating: 100% (QA)
1 Sell to Amy at 60 To maximize total contribution ... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
Posted Date:
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