An entrepreneur invests in a new play. The cost includes an overhead of $29,375 plus production costs of $2100 perperformance. A sold-out performance brings in $2725. Assume every performance is sold out, and let x represent thenumber of sold-out performances.b. Write the revenue function, R.R(x)= (Type an expression using x as the variable.)c. Determine the break-even point.(Type an ordered pair. Do not use commas in large numbers.)Describe what the break-even point means. Select the correct choice below and fill in the answer box to complete yourchoice.ΟΤΟA. For…B. ForOC. Forsold-out performances, both cost and revenue are $sold-out performances, the loss is $sold-out performances, the gain is $ An entrepreneur invests in a new play. The cost includes an overhead of $29,375 plus production costs of $2100 perperformance. A sold-out performance brings in $2725. Assume every performance is sold but, and let x represent thenumber of sold-out performances.a. Write the cost function, C.C(x) = (Type an expression using x as the variable.)b. Write the revenue function, R.R(x) = (Type an expression using x as the variable.)c. Determine the break-even point.(Type an ordered pair. Do not use commas in large numbers.)Describe what the break-even point means. Select the correct choice below and fill in the answer box to complete yourchoice.OA. Forsold-out performances, both cost and revenue are $

Here we are given a scenario of of a "Play" where both the costs and revenue are involved. There…

An entrepreneur invests in a new play. The cost includes an overhead of $29,375 plus production costs of $2100 per performance. A sold-out performance brings in $2725. Assume every performance is sold out, and let x represent the number of sold-out performances. b. Write the revenue function, R. R(x)= (Type an expression using x as the variable.) c. Determine the break-even point. (Type an ordered pair. Do not use commas in large numbers.) Describe what the break-even point means. Select the correct choice below and fill in the answer box to complete your choice. A. For sold-out performances, both cost and revenue are $ OB For sold-out performances, the loss is $

An entrepreneur invests in a new play. The cost includes an overhead of $29,375 plus production costs of $2100 per performance. A sold-out performance brings in $2725. Assume every performance is sold out, and let x represent the number of sold-out performances. b. Write the revenue function, R. R(x)= (Type an expression using x as the variable.) c. Determine the break-even point. (Type an ordered pair. Do not use commas in large numbers.) Describe what the break-even point means. Select the correct choice below and fill in the answer box to complete your choice. A. For sold-out performances, both cost and revenue are $ OB For sold-out performances, the loss is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Only typed solution
A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=70 -0.2D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $700 per month and the variable cost is $40 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? a. The maximum profit per month for this product is $ (Round to the nearest dollar.)
ammm. 11
To produce the next popular toy, a company has to pay a factory $250, 000 to set up the production line. They also have to pay $25 per item for the raw materials and labor. Write function for the average cost to produce x items. Then describe what happens to the average cost as the factory produces a large number of toys.
The marginal revenue (in thousands of dollars) from the sale of x handheld gaming devices is given by the following function. R'(x) = 4x (x²+25,000) (a) Find the total revenue function if the revenue from 120 devices is $34,166. (b) How many devices must be sold for a revenue of at least $50,000? (a) The total revenue function is R(x), given that the revenue from 120 devices is $34,166. (Round to the nearest integer as needed.) (b) devices must be sold to generate a revenue of at least $50,000 (Type a whole number.)
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1800 and the marginal cost is MC = 90Vx + 4, with a fixed cost of $600. (a) Find the profit or loss from the production and sale of 5 units. There is a -Select-- | of $ (b) How many units will result in a maximum profit? units
The daily demand function for x LED lights sold by a major retailer is p = 1112.5 0.75x dollars, and the average cost of sales is C = 250 + 3x dollars. Find the quantity that will maximum profit, the selling price at that quantity and the maximum profit. a) Selling LED lights will maximum profit. b) The selling price at the answer in part (a) is $ c) The maximum profit is $
A firm uses the production technology q = (x{ + xP, where a is a constant and 0 # p< 1. (a) Derive the firm's cost function, c(w1,W2,9). (b) Derive the firm's profit, 7(p,w1,w2). (c) Derive the elasticity of scale for this production technology. (d) What restrictions must a satisfy to ensure that the profit function is well-defined? Explain.
A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,200 per day, while two machines will result in a fixed cost of $3,700 per day. Variable costs will be $20 per customer, and revenue will be $45 per customer. a. Determine the break-even point for each range. (Round your answers to the next whole number.) One machine Two machines b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?
The HAC at Humberview has decided to sell Gatorade to raise money. The demand function is described by px=-4x+340 , where x is the number of bottles, in hundreds, and px is in dollars. The cost function, in dollars, is described by Cx=300x-275. Determine the number of Gatorade bottles they must sell so that they maximize their profit.
Consider a firm with the market demand function for its product given by: p =1000 – 2Q; and total cost of production given by: TC = Q3 – 59Q2 + 1315Q + 2000. (a) Obtain the firm’s Total Revenue function. (b) Find the amount of Total Revenue when the firm sells 30 units of output. (c) Obtain the firm’s Profit function. (d) Find the amount of Total Profit when the firm sells 30 units of output.
Website Profit You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 1120 log-ons per month. When you lowered the price to $2.50, the demand increased to 1400 log-ons per month. (a) Construct a linear demand function for your website and hence obtain the monthly revenue R as a function of the log-on fee x. R(x) = = (b) Your Internet provider charges you a monthly fee of $50 to maintain your site. Express your monthly profit P as a function of the log-on fee x. P(x) = Determine the log-on fee you should charge to obtain the largest possible monthly profit (in dollars). X = $ What is the largest possible monthly profit (in dollars)? $ LA