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Your company produces and sells cat food. Your companys fixed cost is $4,500 per day and its variable cost is $25 per case of cat
- Your company produces and sells cat food. Your companys fixed cost is $4,500 per day and its variable cost is $25 per case of cat food produced. After researching the market, you estimate the price your company can sell each case of cat food to be $58-$0.40D where D is the number of cases sold per day. Without using the equations in your book:
- How many cases should your company sell per day to maximize its daily revenue?
- How many cases should your company sell per day to maximize its daily profit?
What is the range of cases of cat food the company should sell per day to be profitable?
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