Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need max profit function Total Profit: P (Q) = 5Q + (2,450.17 +1.17Q) P (Q) = 3.83Q + 2,450.17 Let's assume on average we sell

need max profit function
image text in transcribed
image text in transcribed
Total Profit: P (Q) = 5Q + (2,450.17 +1.17Q) P (Q) = 3.83Q + 2,450.17 Let's assume on average we sell 100 hotdogs per day. P (Q) = $5 (R per hotdog) - $1.17 (TC per hotdog) = $3.83 (P for 1 hotdog). $3.83 (P for 1 hotdog) x 100 (Average sold hotdogs) = $383 (P per day) I Marginal Cost: P(Q) = $6 (R per hotdog) - $1.17 (TC per hotdog) = $4.83 (P for 1 hotdog). $4.83 (P for 1 hotdog) x 100 (Average sold hotdogs) = $483 (P per day) Product Price Quantity Total cost for 1 Buns $2.99 8 8 $0.37 Wieners $2.39 10 $0.24 $1,849 1 $1,849.00 $9.35 50 Hot dog cart Ketchup packets Mayonnaise packets Mustard packets Total Cost $0.19 $0.20 I $11.99 60 $6.98 40 $0.17 $1,850.17 Total Profit: P (Q) = 5Q + (2,450.17 +1.17Q) P (Q) = 3.83Q + 2,450.17 Let's assume on average we sell 100 hotdogs per day. P (Q) = $5 (R per hotdog) - $1.17 (TC per hotdog) = $3.83 (P for 1 hotdog). $3.83 (P for 1 hotdog) x 100 (Average sold hotdogs) = $383 (P per day) I Marginal Cost: P(Q) = $6 (R per hotdog) - $1.17 (TC per hotdog) = $4.83 (P for 1 hotdog). $4.83 (P for 1 hotdog) x 100 (Average sold hotdogs) = $483 (P per day) Product Price Quantity Total cost for 1 Buns $2.99 8 8 $0.37 Wieners $2.39 10 $0.24 $1,849 1 $1,849.00 $9.35 50 Hot dog cart Ketchup packets Mayonnaise packets Mustard packets Total Cost $0.19 $0.20 I $11.99 60 $6.98 40 $0.17 $1,850.17

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

Students also viewed these Accounting questions