Question

A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Use the data (and helpful hints) that follow to work out answers.
- Total cost = Fixed cost + Variable Cost
- Revenue = Demand X Price
- Profit = Revenue - Total Cost

Set up your graph with dollars on the y axis (between 0 and $70,000) and, on the x axis, demand D: (units produced or sold), between 0 and 1000 units.

a) Develop the equations for total cost and total revenue.
b) Find the breakeven quantity (in terms of profit and loss) for the product.
c) Find the profit that the company would obtain by maximizing it's total revenue and neatly graph the solutions

Answer 1

Answer:

i would be A

Explanation:

A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Use the data (and helpful hints) that follow to work out answers.

- Total cost = Fixed cost + Variable Cost

- Revenue = Demand X Price

- Profit = Revenue - Total Cost

Set up your graph with dollars on the y axis (between 0 and $70,000) and, on the x axis, demand D: (units produced or sold), between 0 and 1000 units.

so our answer is A