Answer:
A. 15 units
B. $130
Explanation:
In order to solve this, we need to use the profit maximization condition for monopoly.
MR = MC will give us the optimal quantity and price for the monopolist.
The consumer's demand for the product is:
Qd = 80 - 0.5P
Therefore, we have:
P = (80 / 0.5) - (Qd / 0.5)
P = 160 - 2Qd
Recall that, Total Revenue:
TR = P * Q
So, in this case TR = 160Q - 2Q^2
MR = d(TR) / dQ = 160 - 4Q
Now, MR = MC
160 - 4Q = 100
4Q = 160 - 100
4Q = 60
Q = 60 / 4
Q = 15 units.
Now, P =160 - 2Q
P = 160 - 2(15)
P = 160 - 30 = 130
The optimal number of units to be placed in a package will therefore be 15 units while the firm should charge $130 for this package.
Answer:
a)$2,043.14
Explanation:
The discount is applicable when both items are bought together.
the total bill for the two items will be $12,695.95 + $924.95
=$13,620.90
15% discount of $13,620.90
=15/100 x $13,620.90
=0.15 x $13,620.90
=$2,043.135
=$2,043.14
Answer:
1. What was the product's operating income(loss) last year = $90,000 loss
2. What is the product's Break even point in unit sales and dollars
• Break even sales in units 18,000
• Break even i n sale dollars $1,260,000
3. Maximum annual profit given an increment of 5,000 units and reduction of sales price per unit by $2.
• Net profit of $20,000
4. What would be the break even point in unit sales and dollars using the selling price that you determined in requirement 3.
• Break even sales units 19,285.7
• Break even in sales dollars $1,311,427.6
Explanation:
Please see attached detailed solution to the above questions and answers.
Answer:
c. $88.17 per order
Explanation:
The computation of the activity rate for the production order is shown below:
Activity rate = Production orders ÷ order size
where,
The Production order is $70,536
And, the order size is 800
Now placing these values to the above formula
So, the activity rate is
= $70,536 ÷ 800 order size
= $88.17 per order
We simply applied the above formula so that the activity rate could come
Answer: If you think the concepts of supply and demand are just relevant for macro economists, you’re probably missing a few ways to improve your small business. Understanding the importance of supply and demand in business terms will help you better plan your pricing, production and marketing.
Explanation: Put in your own words so that they dont see this answer because my teachers check the internet for plagiarism.
