Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bags Fixed Cost Variable Cost Total Cost 1700 1700 100 1700 500 2200 200 1700 1200 2900 300 1700 2700 4400 400 1700 5200 6900

image text in transcribed
Bags Fixed Cost Variable Cost Total Cost 1700 1700 100 1700 500 2200 200 1700 1200 2900 300 1700 2700 4400 400 1700 5200 6900 500 1700 9000 10700 600 1700 15000 16700 700 1700 23800 25500 800 1700 36800 38500 900 1700 55800 57500 1000 1700 83000 84700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? Please select any/all correct responses below: Using Qb = F/(MR - AVC) where Qb is the break even quantity, the event would break even at 283 bags. Using the profit-maximizing rule, MR 2 MC, the quantity of bags that will maximize profits is 200 bags. Using the profit-maximizing rule, MR_ MC, the quantity of bags that will maximize profits is 300 bags. The break even quantity cannot be determined in this case

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

Global Capitalism Its Fall And Rise In The Twentieth Century

Authors: Jeffry Frieden

1st Edition

039332981X, 9780393329810

More Books

Students also viewed these Economics questions

Question

Briefly describe Kants theory of moral development.

Answered: 1 week ago

Question

Identify HRM systems, practices, and policies.

Answered: 1 week ago