Question
1 a) Maxime Ltd. has established their products selling price as P=$24 -0.2X, where X represents the number of units sold. They also estimate their
1 a)
Maxime Ltd. has established their products selling price as P=$24 -0.2X, where X represents the number of units sold. They also estimate their variable costs to be $2 per unit plus fixed cost of $300.
At this breakeven level what price per unit will their product sell?
a. | Sub X=17.54 into the price function to get the unit selling price. P= 24-0.2x =24-0.2(17.54) =24-3.51 =20.49. Or sub X=90.5 to get 24 - 0.2(90.5) = 24 - 18.1 = 5.90 | |
b. | Sub X=15.95 into the price function to get the unit selling price. P= 24-0.2x =24-0.2(15.95) =24-3.19 =20.81. Or sub X=94.05 to get 24 - 0.2(94.05) = 24 - 18.81 = 5.19 | |
c. | Sub X=19.95 into the price function to get the unit selling price. P= 24-0.2x =24-0.2(19.95) =24-3.99 =20.01. Or sub X=97.05 to get 24 - 0.2(97.05) = 24 - 19.41 = 4.59 | |
d. | Sub X=18.90 into the price function to get the unit selling price. P= 24-0.2x =24-0.2(18.9) =24-3.78 =20.22. Or sub X=104.00 to get 24 - 0.2(104.00) = 24 - 20.8 = 3.2 |
1b)
Maxime Ltd. has established their products selling price as P=$24 -0.2X, where X represents the number of units sold. They also estimate their variable costs to be $2 per unit plus fixed cost of $300.
Determine profit functions.
a. | P(x)=R(x)+ C(x) | |
b. | P(x)=R(x)- C(x) + 2 | |
c. | P(x)=R(x)- C(x) | |
d. | P(x)=C(x)- R(x) |
1 c)
Maxime Ltd. has established their products selling price as P=$24 -0.2X, where X represents the number of units sold. They also estimate their variable costs to be $2 per unit plus fixed cost of $300.
Determine the total cost function.
a. | C(x)=Variable Costs+Fixed Costs = x+300 | |
b. | C(x)=Variable Costs+Fixed Costs =2+300x | |
c. | C(x)=Variable Costs = x+300 | |
d. | C(x)=Variable Costs+Fixed Costs =2x+300 |
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