A manufacturer of cassette tapes expects a fixed cost of $55,000. It plans to work on margin of forty six percent of retail, and to incur other variable cost of $0.4 per cassette. Selling price of per cassette is $6 dollar. i. Find the revenue, cost, and profit functions using q for number of cassettes. ii. How much profit will be earned if 25000 cassettes are produced? iii. Construct the break-even chart. Label the cost & revenue lines, the fixed cost line and the break-even point.
A manufacturer of cassette tapes expects a fixed cost of $55,000. It plans to work on margin of forty six percent of retail, and to incur other variable cost of $0.4 per cassette. Selling price of per cassette is $6 dollar. i. Find the revenue, cost, and profit functions using q for number of cassettes. ii. How much profit will be earned if 25000 cassettes are produced? iii. Construct the break-even chart. Label the cost & revenue lines, the fixed cost line and the break-even point.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 7E
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A manufacturer of cassette tapes expects a fixed cost of $55,000. It plans to work on margin of forty six percent of retail, and to incur other variable cost of $0.4 per cassette. Selling price of per cassette is $6 dollar. i. Find the revenue, cost, and profit functions using q for number of cassettes. ii. How much profit will be earned if 25000 cassettes are produced? iii. Construct the break-even chart. Label the cost & revenue lines, the fixed cost line and the break-even point.
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