Solve for the missing side
1 answer:
You might be interested in
Answer:
Minimum total cost = $20550
maximum revenue $44,100
Step-by-step explanation:
Given data:
Production cost $5.55 per unit
Fixed cost = $15000 per month
Price, p = 42-0.01 q
where. q represent number of unit produced
revenue can be wriiten as
p.q = 42q - 0.01q^2
1) from information 1000 unit has to produced therefore
total cost = 15000 + 5.55×1000 = $20550
Minimum total cost = $20550
2) Revenue = 42q - 0.01q^2
therefore for maximum revenue q is = 2100
so, maximum revenue
= $44,100