Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.1. A spin-off company from UNISA enterprises that produces an environmentally friendly lixiviant for leaching refractory gold ores has determined that the price and the

image text in transcribed

1.1. A spin-off company from UNISA enterprises that produces an environmentally friendly lixiviant for leaching refractory gold ores has determined that the price and the monthly demand of its lixiviant are related by the expression D2=40002p, where p is the price per tonne in rands and D is the monthly demand in tonnes. The associated fixed costs are R11250.00 per month, and the variable costs are R1000. 00/ tonne. i) Show that the first derivative of the total profit (Pr) per month is given by the following expression: dDdPr=D2+1000 (Show all step and reasoning) ii) What is the optimal number of units that should be produced and sold each month? [3] iii) Develop an expression/ equation that can be used to determine the value of D at the breakeven point? [2] 1.1. A spin-off company from UNISA enterprises that produces an environmentally friendly lixiviant for leaching refractory gold ores has determined that the price and the monthly demand of its lixiviant are related by the expression D2=40002p, where p is the price per tonne in rands and D is the monthly demand in tonnes. The associated fixed costs are R11250.00 per month, and the variable costs are R1000. 00/ tonne. i) Show that the first derivative of the total profit (Pr) per month is given by the following expression: dDdPr=D2+1000 (Show all step and reasoning) ii) What is the optimal number of units that should be produced and sold each month? [3] iii) Develop an expression/ equation that can be used to determine the value of D at the breakeven point? [2]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Numerical Techniques In Finance

Authors: Simon Benninga

1st Edition

0262022869, 978-0262022866

More Books

Students also viewed these Finance questions

Question

e. Compute R2 and .

Answered: 1 week ago