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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 UnitsVariable 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?

Before starting your calculations, review materials on profit maximization output.

Submit your Profit-Maximization Output Report and Calculations to the dropbox below. Submit a spreadsheet showing your calculations in Excel and provide a narrative analysis in Word. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of the company.

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