Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has a fixed cost of $ 3 0 , 0 0 0 and a production cost of $ 1 0 for each pair

A company has a fixed cost of $30,000 and a production cost of $10 for each pair of sunglasses it manufactures. Each pair of sunglasses sells for $15.
a) What are the cost, revenue, and profit functions?
b) Find the profit (loss) corresponding to production levels of 5000 and 10000 units, respectively.
c) Sketch a graph of the cost and revenue functions.
d) Find the break-even point for the company algebraically.
Solution:
a)
b)
c)
d)
image text in transcribed

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

Handbook Of Energy Finance Theories Practices And Simulations

Authors: Stéphane Goutte, Duc Khuong Nguyen

1st Edition

9813278374, 978-9813278370

More Books

Students also viewed these Finance questions

Question

How can a business avoid having terms implied into a contract?

Answered: 1 week ago

Question

Using Language That Works

Answered: 1 week ago

Question

4. Are my sources relevant?

Answered: 1 week ago