Homework Answers
Solution-
a) profit=( Price - Average Cost)×quantity
Total cost = Total fixed Cost +Total variable Cost
Total Cost= 75000+75D, where D is production rate
B) to maximize profits, company will have to set it's marginal cost equal to marginal revenue
So for profitable business it should produce between 1000 and 1500 units.
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PLEASE DO BY HAND! DQuestion 12 6 pts Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year is 10,000 units. It costs about $80 to set up th...
PLEASE DO BY HAND!
DQuestion 12 6 pts Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year is 10,000 units. It costs about $80 to set up the manufacturing process, and the carrying cost is about 70 cents per unit per year. When the production process has been set up, 120 lawnmowers units can be made daily. The demand during the production period is approximately 60 units per day. The company operates its...
Starfax, Inc., manufactures a small part that is widely used in various electronic products such as...
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Starfax, Inc., manufactures a small part that is widely used in various electronic products such as...
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PLEASE DO BY HAND!
DQuestion 12 6 pts Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year is 10,000 units. It costs about $80 to set up the manufacturing process, and the carrying cost is about 70 cents per unit per year. When the production process has been set up, 120 lawnmowers units can be made daily. The demand during the production period is approximately 60 units per day. The company operates its...
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