Question

When a wholesaler sold a product at $30 per unit, sales were 390
units per week. After a

price increase of $5, however, the average number of units sold
dropped to 365 per week. Assuming

that the demand function is linear, what price per unit will yield
a maximum total revenue?

Answer #1

Please comment for any doubts

JMC manufacturers sells 500 units per week at 29 dollars per
unit. If the price is reduced by one dollar, 20 more units will be
sold. In addition, the cost function for JMC Manufacturers is also
given by ?(?) = 40? + 10000
a. To maximize the revenue, find the following:
I. [2 marks]. The number of units sold number of units sold.
II. [2 marks]. The maximum revenue.
b. [2 marks]. Find the value of x that maximizes the...

When a sales manager charged a price of $10, approximately 4,000
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What is the MR? (b) What price would maximize profit? (c) What
impact would a price decrease have on revenue?

The weekly demand function for x units of a product
sold by only one firm is p = 400 − 1/2x dollars, and the average
cost of production and sale is
C = 100 + 2x dollars.
(a) Find the quantity that will maximize profit.
units
(b) Find the selling price at this optimal quantity.
$ per unit
(c) What is the maximum profit?
$
The weekly demand function for x units of a product sold by only
one firm is...

Last year Minden Company introduced a new product and sold
25,700 units of it at a price of $96 per unit. The product's
variable expenses are $66 per unit and its fixed expenses are
$833,100 per year.
Required:
1. What was this product's net operating income (loss) last
year?
2. What is the product's break-even point in unit sales and
dollar sales?
3. Assume the company has conducted a marketing study that
estimates it can increase annual sales of this...

The weekly demand function for x units of a product
sold by only one firm is
p = 300 −
1
2
x dollars,
and the average cost of production and sale is
C = 200 + 2x dollars.
(a) Find the quantity that will maximize profit.
units
(b) Find the selling price at this optimal quantity.
$ per unit
(c) What is the maximum profit?

The weekly demand function for x units of a product
sold by only one firm is
p = 600 −1/2x dollars
,
and the average cost of production and sale is
C = 300 + 2x dollars.
(a) Find the quantity that will maximize profit.
units
(b) Find the selling price at this optimal quantity.
$ per unit
(c) What is the maximum profit?
$

This year Burchard Company sold 29,000 units of its only product
for $19.20 per unit. Manufacturing and selling the product required
$114,000 of fixed manufacturing costs and $174,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material
$
3.40
Direct labor (paid on the basis
of completed units)
2.40
Variable overhead costs
0.34
Variable selling and
administrative costs
0.14
Next year the company will use new material, which will reduce
material costs by 70% and direct...

In
a stylized economy 1000 units of product X were sold for the price
10 dollars/unit meanwhile 1000 units of product Y were sold for the
price 20 dollars/unit in 2005. In the same economy 1200 units of
product X were sold for the price 20 dollars/unit meanwhile 1000
units of product Y were sold for the price 25 dollars/unit in 2010.
Calculate nominal GDP, real GDP and the GDP deflator for 2005 and
2010 assuming the base year is...

The demand for a product is 600 units per week, and the items
are withdrawn at a constant rate. The setup cost for placing an
order to replenish inventory is $25. The unit cost of each item is
$3, and the inventory holding cost is $0.05 per item per week. Show
how each of these below changes, will impact Maximum Inventory
S*
(a) The setup cost is reduced to 50% of original value
(b) The annual demand rate become three...

The demand function for a monopolist's product is
p=1300-7q and the average cost per unit for producing q
units is
c=0.004q2-1.6q+100+5000/q
-Find the quantity that minimizes the average cost function and
the corresponding price. Interpret your results.
-What are the quantity and the price that maximize the profit?
What is the maximum profit? Interpret your result.

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