HERE ARE THE GUIDES FOR MY QUESTIONS

Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $ 80,000. Variable production and material costs are estimated to be $3 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstores for $ 20 each.examples Nowlin is considering outsourcing the production of some products for next year, including the Viper. Nowlin has a bid from an outside firm to produce the Viper for $3.50 per unit. Although it is more expensive per unit to outsource the Viper ($3.50 versus $2.00), the fixed cost can be avoided if Nowlin purchases rather than manufactures the product. the product. The exact demand for Viper for next year is not yet known. Nowlin would like to compare the costs of manufacturing the Viper in house to those of outsourcing its production to another firm, and management would like to do that for various production quantities. How much is the total outsource cost to produce 10000 units? $35000 Model Development Models Used in Economics Cost function C(x) 3* is the cost of producing x units of the commodity. Revenue function R(x) > is the revenue obtained from selling x units of the commodity R(x) = x). Prot function Pfx) FF is the prot obtain from selling x units of the commodity P( x) = R(x) C (x). Model Development COST AND VOLUME MODELS The cost of manufacturing or producing a product is a function of the volume produced. COST = FIXED COST + VARIABLE COST C(x) = FC + VC(x) Fixed cost (FC) - portion of the total cost that does not depend on the production volume - remains the same no matter how much is produced Variable cost (VC) - portion of the total cost that depends on and varies with the production volume