1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lora16 [44]
3 years ago
15

A firm is planning to manufacture a new product. As the selling price is increased, the quantity that can be sold decreases. Num

erically they estimate
P = $35.00 - 0.02Q

(P = selling price per unit, Q = quantity sold per year)

On the other hand, management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases

C = $4.00Q + $8000

where C = cost to produce and sell Q per year

The want to maximize profit. What quantity should the decision makers plan to produce and sell each year?
Business
1 answer:
Oduvanchick [21]3 years ago
5 0

Answer:

Profit Maximising Quantity = 775

Explanation:

Price P = 35 - 0.02Q

Total Revenue TR = Price x Quantity = P X Q

= (35 - 0.02Q)(Q)  = 35Q - 0.02Q^2

Total Cost TC = 8000 + 4Q

Profit = TR - TC

[35Q - 0.02Q^2] - [8000+4Q]  =  35Q - 0.02Q^2 - 8000 - 4Q

Profit Function = - 0.02Q^2 + 31Q - 8000

To find out profit maximising Quantity , we will differentiate Profit Function with respect to Q & equate it to 0.

dTR/ dQ = -0.04Q + 31 = 0

Q = 31/0.04 = 775

To verify whether 775 is profit maximising Q, we will do second derivative & check that it is negative.

d^2TR/ dQ^2 = -0.04 i.e < 0 (negative)

So 775 is profit maximising quantity

You might be interested in
The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and pay
charle [14.2K]

Answer:

a) True

Explanation:

Electronic bill payment and presentment (EBPP) can be regarded as process that is been utilized by

companies in collection of payments electronically by utilization of systems such as Automated Teller Machines (ATMs) as well as Internet and direct-dial access. This has turned to a core component of online banking as regards to some financial institutions today, some industries such as telecommunications and insurance providers make use of it.

Electronic invoicing and presentment payment (EIPP) can be regarded as process involving sending of electronic invoice to customers using the internet, as well as the ability of customers to be able to pay that invoice online also. It give a solution that brings about increased productivity, as well as given room for business owner to spend more time in developing their business as well as relationships with their customers.

It should be noted that the The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment.

3 0
3 years ago
Which of the following is an unethical behavior for a salesperson?
Natalija [7]
The correct answer is A.
4 0
3 years ago
Read 2 more answers
Brown Co. pays weekly salaries of $10,500 on Friday for a five-day workweek ending on that day. Assuming the end of the accounti
ra1l [238]

Answer:

c.credit to Wages Payable for $6,300.

Explanation:

The journal entry to record the wages expense is shown below;

Wages expense dr ($10,500 × 3 ÷ 5) $6,300

      To Wages payable $6,300

(being the wages expense is recorded)

Here the wages expense is debited as it increased the expense and credited the wages payable as it increased the liabilities

8 0
3 years ago
Hours of labor or number of workers are commons ways of measuring a comapany's?
Andrej [43]
Productivity, hope this helps:)
7 0
3 years ago
The school of philosophy that acknowledged the gods but taught that they had no influence on human life and that the principle g
NNADVOKAT [17]

Answer:

The correct answer is letter "B": Epicurus.

Explanation:

Greek philosopher Epicurus (341 b.C. - 270 a.C.) was immortalized in the Latin poem "<em>On the nature of things</em>" -Lucrecio- in which Epicurus is attributed that the object of wisdom is to suppress the obstacles that oppose to happiness. This does not imply the pursue of unbridled pleasure, but of a measured lifestyle in which the spirit can enjoy friendship and the cultivation of knowledge.

5 0
3 years ago
Other questions:
  • Carrie noticed at work that Chris and Bucky kept asking her advice on office procedures. Soon, she began to see herself as compe
    15·1 answer
  • How does a diversified investment portfolio reduce investors' risk of losing money?
    6·2 answers
  • Carl jung's view of extroverted and introverted types serves as a basis of the ________.
    11·1 answer
  • Why are junk bonds more popular during a bear market
    10·1 answer
  • Toys R Fun purchased $4,000 of merchandise for resale and paid immediately. To record this transaction, Toys R Fun's accountant
    8·1 answer
  • ___________ replace the typical magnetic strip on a credit or debit card with a microprocessor. smart cards
    7·1 answer
  • Năm trước, doanh thu đạt được 1 triệu $, trong đó 250.000 là doanh thu bán chịu; số dư khoản phải thu khách hàng trung bình là 4
    6·1 answer
  • Nelson Corporation sells three different products.The following inventory information is available on December 31: Ch6_Q150 Afte
    7·1 answer
  • Pittman Framing's cost formula for its supplies cost is $1,110 per month plus $11 per frame. For the month of November, the comp
    12·1 answer
  • 2. What should Parker have done during the sales presentation when Kitchel told him that he needed to think it over?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!