Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(a) A general insurance can sell 30 car insurance policies for every month if they charged RM35 per policy. Moreover, for each decrease or increase

(a) A general insurance can sell 30 car insurance policies for every month if they charged RM35 per policy. Moreover, for each decrease or increase of RM2 in the price, the company can sells 1 more or less car insurance policy, respectively. Fixed cost are RM 150. Variable costs are RM20 per policy.

(i) What is the price function of the car insurance policy?

(ii) By using the price function in 

(iii) construct the revenue function and cost function.

(iv) By using the answers from (ii) Find the profit function.

(b) What is the maximum monthly profit that the company can achieve from selling the car insurance policies.

x + 2y + z 32 2x +3y + z 3 -1 %3D %3D 4

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_2

Step: 3

blur-text-image_3

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions