A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $84309 per month. The variable cost per thousand board feet is $220.0 for demand 2176 units. The price charged will be determined by P $739-0.07D per 1000 board feet. For this situation, calculate the profit for the mentioned scenario. Select one: O a. 1045034.93 O b.713586.68 O c. 3498584082.68 O d. 1213500.68

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $84309 per month. The variable cost per thousand board feet is $220.0 for demand 2176 units. The price charged will be determined by P $739-0.07D per 1000 board feet. For this situation, calculate the profit for the mentioned scenario. Select one: O a. 1045034.93 O b.713586.68 O c. 3498584082.68 O d. 1213500.68

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 large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can
be allocated to the production of the plywood is $84309 per month. The variable cost per thousand board
feet is $220.0 for demand 2176 units. The price charged will be determined by P-$739-0.07D per 1000
board feet.
For this situation, calculate the profit for the mentioned scenario.
Select one:
a. 1045034.93
O b. 713586.68
C. 3498584082.68
d. 1213500.68

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