Please show solution for this question.

Determine the revenue (R) and cost (TC). The production will vary according to the sales volume. Express the equation as follows.

R = 100N 0.001N²

TC = 0.005N²+4N+60,000

Find

1) The most profitable production volume.

2) Volume of production at break even point.

3) Production volume with lowest average cost.

Answer

1) 8,000 units

2) 6,000 units

3) 3,464 units