A company has a linear total cost function and has determined that over the next three months it can produce 10,000 units at a total cost of $4,50,000. This same manufacturer can produce 20,000 units at a total cost of $5,00,000. The selling price per unit is $7. a) Determine the revenue, cost and profit functions. b) Find the profit if 15,00000 units are produce. c) Find the break-even quantity. d) What is the break-even dollar volume of sales?

A company has a linear total cost function and has determined that over the next three months it can produce 10,000 units at a total cost of $4,50,000. This same manufacturer can produce 20,000 units at a total cost of $5,00,000. The selling price per unit is $7. a) Determine the revenue, cost and profit functions. b) Find the profit if 15,00000 units are produce. c) Find the break-even quantity. d) What is the break-even dollar volume of sales?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A company has a linear total cost function and has determined that over the next three months it
can produce 10,000 units at a total cost of $4,50,000. This same manufacturer can produce
20,000 units at a total cost of $5,00,000. The selling price per unit is $7.
a) Determine the revenue, cost and profit functions.
b) Find the profit if 15,00000 units are produce.
c) Find the break-even quantity.
4.
d) What is the break-even dollar volume of sales?

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