Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

From the data given below, how many litres of orange juice should the business produce? Why? Explain your answer by referring to the profit maximizing

From the data given below, how many litres of orange juice should the business produce? Why? Explain your answer by referring to the profit maximizing condition.

image text in transcribed
Hectares (Ha) Total Trees Fruit Yield (kg) Orange Juice Output (L) 100 20000 440000 176000 150 30000 660000 264000 200 40000 880000 352000 250 50000 1100000 440000 300 60000 1320000 528000 350 70000 1540000 616000 400 80000 1760000 704000 450 90000 1980000 792000 500 100000 2200000 880000 550 110000 2420000 968000 Cost Schedule Hectares (Ha) Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 100 771,000 $ 329,120 $ 1,100,120 4.38 1.87 6.25 150 771,000 384,912 to 1,155,912 2.92 1.46 4.38 -1.87 to to 200 771,000 385,088 1,156,088 2.19 1.09 3.28 -1.09 250 771,000 515,240 1,286,240 1.75 1.17 2.92 -0.36 to to 300 771,000 680,592 1,451,592 1.46 1.29 2.75 0.17 350 771,000 848,232 1,619,232 1.25 1.38 2.63 -0.12 to to + 400 771,000 1,255,232 2,026,232 1.10 1.78 2.88 0.25 450 771,000 1,861,992 2,632,992 0.97 2.35 3.32 0.45 500 771,000 3,102,880 3,873,880 0.88 3.53 4.40 1.08 550 771,000 S 6,828,272 5 7,599,272 0.80 7.05 7.85 3.45 Profit Schedule Revenue Total Cost Profit 1,214,400 $ 1,100,120 $ 114,280 1,821,600 1,155,912 665,688 to to + to to 2,428,800 1,156,088 1,272,712 3,036,000 1,286,240 1,749,760 3,643,200 1,451,592 to 2,191,608 to to 4,250,400 1,619,232 2,631,168 4,857,600 2,026,232 2,831,368 5,464,800 2,632,992 2,831,808 6,072,000 3,873,880 2,198,120 6,679,200 7,599,272 $ (920,072)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Economics questions