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zmey [24]
3 years ago
13

The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a produ

ction level of 7 comma 9007,900 bats to be $ 12$12. If $ 22 comma 600$22,600 of the total costs are​ fixed, what is the variable cost of producing each​ bat?
Business
1 answer:
zlopas [31]3 years ago
4 0

Answer:

variable cost of producing is $72,200

Explanation:

given data

total costs = 7,900

production @ $12

fixed = $22600

to find out

variable cost of producing each​ bat

solution

we know here that

total costs at 7,900 production @ $12 then that would be

= 7,900 × 12   = 94,800

so now we can say  variable will be here  = $94,800 - $22600

so variable = 72200

hence  variable cost of producing is $72,200

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Answer:

Given : Inverse demand function : P = 150 - 3Q

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Here we will first find Total Revenue.

i.e.  Total Revenue(T.R) = P*Q

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Where Q = Q_{1} + Q_{2}

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(a) MR = 150 - 6Q

MR = 150 - 6(Q_{1} + Q_{2})

(b) Since we know that profit maximizing condition is given as :

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Therefore , profit maximizing condition for facility 1 is

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Similary profit maximizing condition for facility 2 is

150 - 6(Q_{1} + Q_{2}) = 2Q_{2}

150 - 6Q_{1} - 8Q_{2}

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150 - 12Q_{1} - 6Q_{2} - 150 - 6Q_{1} - 8Q_{2}

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P = 150 - 60

P = 90

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