XYZ Ltd. produces and sells a product branded Xedo. The product is produced in two departments;...
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XYZ Ltd. produces and sells a product branded "Xedo". The product is produced in two departments; manufacturing and assembly. The marginal revenue (MR) of XYZ Ltd. is given by the function MR-600-0.12q Where q is the number of units produced and sold. The total variable cost (VC) for the two departments is given as follows: Manufacturing department VC=60q+0.06q Assembly department VC = 12q +0.03q The total fixed cost for each of the departments is as follows: Sh. 40,000 120,000 Manufacturing department Assembly department Required: (i) (iii) The total revenue, total cost and profit functions of XYZ Ltd. The profit maximising level of output. The maximum profit of XYZ Ltd. (6 marks) (2 marks) (1 mark) XYZ Ltd. produces and sells a product branded "Xedo". The product is produced in two departments; manufacturing and assembly. The marginal revenue (MR) of XYZ Ltd. is given by the function MR-600-0.12q Where q is the number of units produced and sold. The total variable cost (VC) for the two departments is given as follows: Manufacturing department VC=60q+0.06q Assembly department VC = 12q +0.03q The total fixed cost for each of the departments is as follows: Sh. 40,000 120,000 Manufacturing department Assembly department Required: (i) (iii) The total revenue, total cost and profit functions of XYZ Ltd. The profit maximising level of output. The maximum profit of XYZ Ltd. (6 marks) (2 marks) (1 mark)
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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