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Andrei [34K]
3 years ago
10

A company manufactures and sells x smartphones per week. The weekly price-demand and cost equations are p=500−0.5x and C(x)=20,0

00+135x respectively.
a. What price should the company charge for the phones and how many phones should be produced to maximize the weekly revenue? What is the maximum weekly revenue ?
b. What is the maximum weekly profit ? How much should the company charge for the phones, and how many phones should be produced to realize the maximum weekly profit ?
Business
1 answer:
suter [353]3 years ago
4 0

Answer:

a)

revenue = x amount of phones x price

revenue = x(500 - 0.5x)

revenue = 500x - 0.5x²

we find revenue' (derivative):

revenue' = 500 - x

x = 500

the company should sell 500 smartphones to maximize revenue, the selling price = 500 - (0.5 x 500) = $250 per smartphone. Maximum weekly revenue = $250 x 500 = $125,000

b)

profit = revenue - cost

profit = 500x - 0.5x²  - 20,000 - 135x

profit = -0.5x² + 365x - 20,000

we must find profit' (derivative):

profit' = -x + 365

x = 365

In order to maximize profits, you have to sell 365 smartphones per week. Maximum weekly profit = -0.5(365²) + 365(365) - 20,000 = -66,612.50 + 133,225 - 20,000 = $46,612.50.

The smartphone's price = 500 - (0.5 x 365) = $317.50

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Which career requires less education than an Auditor?

A) Accountant

B) Bookkeeper

C) Credit Analyst

D) Financial Manager

6 0
2 years ago
Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will
kari74 [83]

Answer:

The price you should be willing to pay for this stock= $24.86

Explanation:

To estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type . Therefore  50= xX1.15^5  by solving this equation we have  x= 24.86  . The price you should be willing to pay for this stock= $24.86

7 0
3 years ago
Prime Company began operations in January, 2019, by issuing 5,700 shares of 9%, cumulative, $65 par value preferred stock and 25
8090 [49]

Answer:

Preference dividend = 9% x $65 x 5,700 shares

                                = $33,345

Dividend paid to ordinary shareholders = $50,000 - $33,345

                                                                 = $16,655

Explanation:

The dividend paid to preferred stockholders is 9% of the par value multiplied by number of preferred stock outstanding. The dividend paid to common stockholders is the difference between total dividend paid and dividend paid to preferred stock holders.

6 0
3 years ago
Which of the following statements supports multiple sourcing:
Makovka662 [10]

Answer:

Concerns exist about supplier capacity for future volume.

Explanation:

The multisourcing is a method in which the supplier base is expanded increasing the actual number of suppliers, because the needs of the company are increasing.

Advantages:

-Alternative sources of materials in case of delivery stoppage by a supplier.

-Reduced probability of bottlenecks due to insufficient production capacity to meet peak demand.

- Increased competition mong suppliers leads to better quality, price, delivery, product innovation and buyer´s negociation power.

-More flexibility to reat to unexpected events that could endanger supplier´s capacity.

Disadvantages:

-Reduced efforts by supplier to match buyer´s requirements.

-Higher cost for the purchasing organization (greater number of orders, telephone calls, records, and so on).

3 0
3 years ago
Question 7
elena-14-01-66 [18.8K]

Today's share price for CCN is $16.67

Today's share price for CCN can be determined using the Gordon constant dividend growth model

The Gordon growth model is used to determine the value of the share of a firm using the value of its dividend with the assumption that the firm grows at a constant rate.

The formula of the Gordon constant dividend growth model :  

price = d1 / (r - g)

d1 = next dividend to be paid = $0.50

r = cost of equity = 12%

g = growth rate = 9%

0.50 / (12% - 9%)

0.50 / 3%

0.50 / 0.03

= $16.67

A similar question was answered here: brainly.com/question/15023105?referrer=searchResults

6 0
2 years ago
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