D8=1

Question 1 [Total 10 marks] A large wood products company in USA is negotiating a contract to sell plywood overseas. The total fixed cost for the production of plywood is USS (800.000 +D810.000 per month. The variable cost per thousand board feet is USS (155.50 +D8). The demand curve is as follows: P=US$ (600 + D8x10) -0.05D4 where P is the price charged D is the quantity demanded (1 unit is thousand board feet) (a) Determine the optimal monthly sales volume for maximum profit. Round off your final answer to the nearest integer." (b) Calculate the maximum profit. Round off your final answer to the nearest hundred. (c) What is the range of profitable demand during a month