suppose that each day a company has fixed costs of 300 dollars and variable cost
ID: 2975345 • Letter: S
Question
suppose that each day a company has fixed costs of 300 dollars and variable costs of 0.8x+1440 dollars per unit, where x is the number of units produced that day. Suppose further that the selling price of its product is 1550-0.25x dollars per unit. A) each day, the company breaks even at production levels ___________ units. (enter your answers as a comma-separated list, if necessary) B) the maximum daily revenue attained is ________ dollars. C) the price that maximize profit is ________ dollars per unit.Explanation / Answer
300+x(.8x+1440)= x(1550-.25x)
300+.8x2+1440x=1550x-.25x2
1.05x2-110x+300=0
x= 102, 2.8
revenue= x(1550-.25x)
= 1550x-.25x2
for maximum, diffrenciate
1550-.50x=0
x=3100
maximum revenue= 3100(1550-.25x3100)= 2,402,500
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