Question
The CEO's next question is, What level of output would be required to maximize our profit on the Android01? You have calculated the variable cost-per-unit
The CEO's next question is, "What level of output would be required to maximize our profit on the Android01?" You have calculated the variable cost-per-unit for different levels of production. From market research, you have a schedule of prices for these levels. The information is summarized in the table below:
| Number of Units | Variable Cost-per-Unit ($) | Sale Price-per-Unit ($) |
|---|---|---|
| 200 | 60,000 | 70,000 |
| 250 | 54,000 | 66,000 |
| 300 | 48,000 | 64,000 |
| 350 | 46,000 | 59,000 |
| 400 | 45,000 | 52,000 |
A recommendation on output could affect everyone in the company, from management to sales, to the floor manager and assembly line workers! You don't want to get this one wrong so you take some extra time to proof your calculations.
Question 4: Based on profit-maximization analysis, what level of output should you recommend to the CEO?
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The Critical Handbook Of Money Laundering Policy Analysis And Myths
Authors: Petrus C. Van Duyne, Jackie H. Harvey, Liliya Y. Gelemerova
1st Edition
1137523972, 978-1137523976
