5. Exercise 11.6 Wyandotte Chemical Company sells various chemicals to the automobile industry. Wyandotte currently sells 30,000 gallons of polyol per year at an average price of $60 per gallon. Fixed costs of manufacturing polyol are $360,000 per year and total variable costs equal $720,000. The operations research department has estimated that a 15 percent increase in output would not affect fixed costs but would reduce average variable costs by 60 cents per gallon. The marketing department has estimated the arc elasticity of demand for polyol to be -2.0. How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold? 7.5 percent Such a price cut would increase total revenues from $1,800,000 to $ Total costs would be $ and total profits would be s

5. Exercise 11.6 Wyandotte Chemical Company sells various chemicals to the automobile industry. Wyandotte currently sells 30,000 gallons of polyol per year at an average price of $60 per gallon. Fixed costs of manufacturing polyol are $360,000 per year and total variable costs equal $720,000. The operations research department has estimated that a 15 percent increase in output would not affect fixed costs but would reduce average variable costs by 60 cents per gallon. The marketing department has estimated the arc elasticity of demand for polyol to be -2.0. How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold? 7.5 percent Such a price cut would increase total revenues from $1,800,000 to $ Total costs would be $ and total profits would be s

Name: 5. Exercise 11.6Wyandotte Chemical Company sells various chemicals to
Uploaded: 2024-03-20T07:07:26.000Z
Channel: Bartleby
Description: 5. Exercise 11.6Wyandotte Chemical Company sells various chemicals to the automobile industry. Wyandotte currently sells 30,000 gallons of polyol per year at anaverage price of $60 per gallon. Fixed costs of manufacturing polyol are $360,000 per yea

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: 7. Find producer surplus and consumer surplus given demand curve p=60–2x and supply curve p=3x+16…

A: The demand curve is: p=60-2x2 The supply curve is: p=3x+16

Q: 3.3 Explain the long-run profit maximising position of a monopolist. Substantiate your answer by…

A: Here we have to find which of the two diagrams shows the long run profit maximizing function.

Q: 2. In order to produce a new product, a firm must lease equipment at a cost of $175,000 per year.…

Q: All else being equal, increasing the level of confidence desired will widen the confidence interval!…

A: Significance level: The significance level, α, is the probability of making the wrong decision when…

Q: You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice.…

A: The objective of this question is to calculate the change in Net Working Capital (NWC) at the end of…

Q: A patient takes vitamin pills. Each day he must have at least 600 IU of vitamin A, 5 mg of vitamin…

Q: Determine the total cost of a diesel generator operating over a 5-year period. Assume that the…

Q: A commercial cherry grower estimates from past records that if 19 trees are planted per acre, then…

A: Today, growers nonetheless plant the manner their grandfathers did, however they face escalating…

Q: Ronan has been accepted at State University in Capital City. The estimated costs of attending State…

Q: 1. In February, NVIDIA stock rose from $197 a share to $243 a share, while AMD stock increased from…

Q: An oil refinery refines types A and B of crude oil and can refine as much as 4000 barrels each week.…

A: An oil refinery refines types A and B of crude oil and can refine as much as 4000 barrels each week.…

Q: 14. Gilbson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves…

A: Solution :-

Q: QUESTION 2 The technical supervisor of South Africa Breweries wishes to investigate how the plant's…

Q: 4. Market research of a product shows that when the price is $2, the demand is 44 units, while when…

Q: The phone company Boom Mobile provides a calling service with a fixed cost of $17 per month, plus a…

Q: Acme Metals buys a sheet metal press for $140,000. They estimate that it will be worth $96,250 in 5…

A: Here, in the question, we have to set up a linear programming model for the situation where Acme…

Q: Which model better represents the true cost function of Applebee’s and why? (Note: There is not a…

A: True cost is the difference between the market price of a commodity and the comprehensive cost of…

Q: Supply and demand are both key concepts to understanding the economy because they reflect the prices…

A: Let's find.

Q: 1. The demand function for a good is shown by the equation P = 20 -Q, while the supply function is P…

A: Consider the provided question, Given, demand function, P = 20-Q and supply function, P = 2+0.5Q

Q: A manufacturer of Bluetooth headphones examines the historical demand of its product and learns that…

A: 1. I have tabulated the data here Monthly Demand Price(Pair)…

Q: Projects Warehouse 1. Supply 50 20 40 100 100 200 30 30 40 50 50 100 40 70 50 50 50 Demand 100 150…

Q: 1. Due to the quarantine, the demand for Nine Tendo On/Off console suddenly peaked and is expected…

A: Decision variables:xq : number of units purchased in quarter q.yq : number of units held over from…

Q: OMEWORK.docx W Page 2 > of 3 ZOOM + 5. Suppose that a simple economy produces only three goods and…

Q: Suppose the supply and demand equation are given as follow: Demand: Qd=120-3*p Supply: Qs=14+2*p…

Q: The toy manufacturer in the prototype example is going to release two new toys in the market. These…

Topic Video

Question

5. Exercise 11.6
Wyandotte Chemical Company sells various chemicals to the automobile industry. Wyandotte currently sells 30,000 gallons of polyol per year at an
average price of $60 per gallon. Fixed costs of manufacturing polyol are $360,000 per year and total variable costs equal $720,000. The operations
research department has estimated that a 15 percent increase in output would not affect fixed costs but would reduce average variable costs by 60
cents per gallon. The marketing department has estimated the arc elasticity of demand for polyol to be -2.0.
How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold?
7.5 percent
Such a price cut would increase
total revenues from $1,800,000 to $
Total costs would be $
and total profits
would be s

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

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Optimization$

Learn more about

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

Similar questions

Below is a decision table for Gregor's Tennis School. Director Gregor Anderson is considering expanding his school to accommodate the potential increased interest in youth tennis lessons, camps and teams. The decision table below describes his situation. Alternatives Add a new building Extend hours for existing building Do Nothing Answer Decision Table High Demand 25,000 10,000 0 Step 1 of 3: What is the estimated payoff for adding a new building during high demand? State of Nature Moderate Demand 5,000 3,750 0 Low Demand -50,000 -6,000- 0 Keypad Keyboard Shortcuts Tables
You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question. What is MR from the 4 th burger?
1
4. Suppose the total money supply is $400bn, and the parameters r andc are the same as in question 3. Calculate the following: a. The monetary basel b. The stock of currency held by the non-bank public c. Bank reserves d. What is the effect on the stock of money if the reserve ratio falls to 7 per cent, the currency ratio is unchanged, and the monetary base is held constant?
A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2070. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start at the beginning of 2030 and take five years at a cost of $30 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $3 million, increasing by 2 percent per year thereafter. At an interest rate of 7 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2070. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 7%. The present worth of this project is $ (Round to two decimal places as needed.) million.
Plz answer correctly asap
Calculate the Producers' Surplus at the indicated unit price p (in dollars) for the given supply equation. p = 100+q; p A. $15,000 B. $35,000 C. $10,000 D. $5,000 = 200