Question
Kitchen Aid Products, Inc., manufactures small kitchen appliances and has recently introduced a new frozen yogurt maker that has clear potential to offset the sluggish
Kitchen Aid Products, Inc., manufactures small kitchen appliances and has recently introduced a new frozen yogurt maker that has clear potential to offset the sluggish sales volume experienced during the recent periods.
Monthly demand and cost relations for Kitchen Aid's yogurt maker are as follows:
P=$300$0.02QP=$300$0.02Q
MR=$300$0.04QMR=$300$0.04Q
TC=$55,000+$25Q+$0.005Q2TC=$55,000+$25Q+$0.005Q2
MC=$25+$0.01Q
Set up a table or spreadsheet for Kitchen Aid output (Q), price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC) and total profit (). Establish a range for Q from 0 to 15,000 in increments of 500 (i.e., 0, 500, 1,000, 1,500, ...., 15,000).
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