1. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. • Total cost = Fixed cost + Variable cost • Revenue = Demand * Price • Profit = Revenue – Total cost 1.1. Develop the equations for total cost and total revenue. 1.2. Find the breakeven quantity.

1. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P= -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. • Total cost = Fixed cost + Variable cost • Revenue = Demand * Price • Profit = Revenue – Total cost 1.1. Develop the equations for total cost and total revenue. 1.2. Find the breakeven quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is…

A: Marginal cost measures the change in total cost due to a change in quantity produced. Marginal cost…

Q: Your last submission is used for your score. 1. Need Help? Read It عيمي Burnem Inc. manufactures…

A: 1.) Substitute y= $408, 200 to the equation. y = 653,000 - 1800x…

Q: (b) A firm has an average cost function 125, q? 4. 16 A(q) where q is the firm's output. (i)…

A: i) The average cost if minimum at that level of output where the first-order derivative of average…

Q: Cost, Revenue & Profit For these problems, xx will represent the number of items and yy will…

A: Slope intercept form: Y=AX + B

Q: You have a price of $5 per unit. Your total variable costs are $1 per unit and your fixed costs are…

A: break-even is at TR=TC TR=P*Q P=5 and Q=? TR=5Q

Q: image 1 : the following average-total-cost schedule: Quantity Average Total Cost (Number of…

A: Since you have posted multiple independent questions in the same request, we will solve the first…

Q: Table: Production Function for Soybeans Quantity of labor (workers) 0 1 2 3 4 5 Quantity of soy…

A: Step 1: Given data :The cost of fixed inputs (land and tractor) is $150 per day.So, the value of…

Q: Match the descriptions below to the appropriate concept: A. Diseconomies of Scale B. Economies of…

A: Economies of scale is dependent on the average total cost. The efficient scale is where the average…

Q: A factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both…

A: Costs are the expenses that a firm incurs in the form of purchase of inputs to produce goods and…

Q: Need help with c (the break even point) and d (the price range for which the company will make a…

A: X Y = 159.24x+65065.22 280 159.24*280+65065.22 =…

Q: What is the wholesale cost of an item, if the retail cost is $62 and the amount of markup is $17?…

A: The wholesale cost of an item can be defined as the cost that is charged to those to whom the goods…

Q: The difference between ATC and AVC decreases with decrease in level of output.

A: Average total cost (ATC) is the ratio of the total cost (TC) and the quantity (Q). ATC=TCQ Average…

Q: 2. Using a linear model, find the breakeven point for a company with $30 per unit sales price, $10…

A: Step 1: Break even is the point at which cost and income are equal and there is neither profit nor…

Q: A business incurs the following costs: • Labor: $125/unit • Materials: $95/unit • Rent:…

A: Total variable cost refers to the addition of all costs that are not constant but vary based on the…

Q: Q.1) The Metal Works Inc. received an order for 500 metal gates. The fixed cost is assumed to be…

A: As per total revenue it is known to be as the value of the total receipts a seller in the market can…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Average Fixed Cost (AFC)Shape: AFC is a downward-sloping curve.Explanation: As output (quantity)…

Q: lassify each individual element of cost according to its behavior pattern (fixed, variable, or…

A: Fixed costs, variable costs, and semi-variable costs are types of costs that are classified based on…

Q: Table: Cost Data Quantity of Output 0 1 2 3 6 7 Variable Cost (VC) 0 50 70 100 140 190 250 320 Total…

A: The price a company pays on average as a fixed expense to create a good for the market is known as…

Question

1. A small company manufactures a certain product.
Variable costs are $20 per unit and fixed costs are $10,875.
The price-demand relationship for this product is P= -0.25D
+ 250, where P is the unit sales price of the product and D is
the annual demand.
• Total cost = Fixed cost + Variable cost
• Revenue = Demand * Price
• Profit = Revenue – Total cost
1.1. Develop the equations for total cost and total revenue.
1.2. Find the breakeven quantity.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assume that the linear cost and revenue models apply. An item costs $6 to make. If fixed costs are $2400 and profits are $2100 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.) R(x) =
1) A manufacturer of kitche. Appliances is preparing to set the price on a new blender. Demand is thought to depend on the proce qnd is represented by the following model. D= 2,800-4p The accounting department estimates that the total cost can be represented by the following model. C=4,700+5D Develop a mathematical model for the total profit of TP in terms of the price, P. A mathematical mod for the total profit in terms of the price P is TP= ______
Number of Consumers Who Try the Product Number of Repeat Customers 10 million 10 million Product Energy bar A Energy bar B In the table above, the profit from repeat customers will equal the cost of the advertisement if there are Profit per Repeat Customer 5 million 1 million $6 6 Profit from Repeat Customers $30 million 6 million Cost of Advertisement $10 million 10 million million repeat customers. (Enter your response rounded to two decimal places.)
Suppose your business operates a machine at a cost of ?$200 per day whether it is used or not plus ?$25 for each hour it is used. Use the line drawing tool to draw the daily cost curve for this machine assuming an 8 hour day. Label the curve? 'cost'. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Which of the following is correct? a) Total Fixed Cost = Total Cost + Total Variable Cost b) Total Cost = Total Variable Cost + Marginal Cost c) Average Fixed Cost = Average Total Cost – Average Variable Cost d) Average Total Cost = Marginal Cost + Average Fixed Cost
please help
Which cost concept is used to determine the most cost-efficient level of production? a) Average cost b) Total cost c) Marginal cost d) Variable cost
Question 22
CEO of Ganymede company produces goods with 500 customers where the number of customers is equal to Q produced, with the cost function TC = 2Q2 + 400Q + 1,300,000. Questions a. Determine fixed costs, variable costs and average costs that the customer musr pay. Describe the calculations! b.If the item sells for 5,000 and 7,000, determine the position of the company and can the company grow?
A company can produce 25 items for a total cost of $ 2250 with a fixed cost of $ 1000 and a selling price of $ 75. Find the cost, revenue, and profit function. Find the break even point. Sketch on the same graph the revenue and cost function and clearly label where the break even point is. When does the company have profit? Explain.
Consider the following total cost function: where represents output and are constants. What can we conclude? (a) The firm experiences rising average fixed costs, but falling average variable costs. (b) The firm experiences falling average fixed costs, but rising average variable costs. (c) The firm experiences falling average fixed costs and falling average variable costs. (d) The firm experiences rising average fixed costs and rising average variable costs
1,200 B TC 1,000 850 700 TVC A 500 2 3 Number of microwave ovens 6. Refer to the figure above. Based on the information shown, the average fixed costs of producing two units of output are: 500 Cost in dollars