Question
One of Kodaks business units sells X-ray film in 100-sheet packages. The following table summarizes possible pricing levels, packages sold at that price, and costs
One of Kodaks business units sells X-ray film in 100-sheet packages. The following table summarizes possible pricing levels, packages sold at that price, and costs for the various number of packages.
Number of Packages Sold
price Number Packages Sold
Total Cost $564 218 $71,800 562 219 71,900 560 220 72,000 558 221 72,100 556 222 72,200 554 223 72,300 552 224 72,400 550 225 72,500 548 226 72,600
Required:
a. What price-quantity combination maximizes the profits of the X-ray film, ignoring the allocation of NASCAR?
b. If $0.10 of the NASCAR is allocated for every dollar of X-ray revenue, what price-quantity combination of X-ray film maximizes profits after allocating NASCAR costs?
c. What price-quantity combination of X-ray film maximizes profits after allocating NASCAR costs using total costs (instead of revenues), where for every dollar of total costs, $0.20 of NASCAR costs are allocated?
One of Kodak's basiness units sells X-ray film in 100-sheet packages. The following table summarizes possible pricing levels, packages sold at that price, and costs for the various mumber of packages. Number of Packages Sold 218 219 Price Total Cost 571,800 71 ,900 72.000 72.100 558 556 554 72.300 72,400 226 RequiredStep by Step Solution
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