A tennis racquet manufacturer is negotiating a lease on land to build a manufacturing plant. The price charged will be determined by p = $450 – (0.1)D per tennis racquet. The manufacturer faces variable costs of $25 per tennis racquet. Fixed costs of manufacturing are currently $25,000, in addition to the value of the lease being negotiated. a. For this situation, determine the optimal monthly sales volume for this product. b. How high can the lease be in order for the firm to make a positive profit.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A tennis racquet manufacturer is negotiating a lease on land to build a manufacturing plant.
The price charged will be determined by p = $450 – (0.1)D per tennis racquet. The
manufacturer faces variable costs of $25 per tennis racquet. Fixed costs of manufacturing
are currently $25,000, in addition to the value of the lease being negotiated.
a. For this situation, determine the optimal monthly sales volume for this product.
b. How high can the lease be in order for the firm to make a positive profit.
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