Bella bakes delicious cookies. Her total fixed cost is $48 a day, and her average variable cost is $1.20 a bag.Few people know about Bella's Cookies, and she is maximizing her profit by selling 12 bags a day for $5.50 abag. Bella thinks that if she spends $60 a day on advertising, she can increase her market share and sell 30bags a day for $5.50 a bag. If Bella advertises, will her average total cost increase or decrease at the quantityproduced?

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Answered: Bella bakes delicious cookies. Her…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Susan is a single mother with three children. She can earn $8 per hour and works up to 2,000 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling $16,000 per year. For every $1 of income she earns, her level of government support will be reduced by $1. The table below is patterned after Table 15.8 from the text. Number of Work Hours Earnings from Work Government Benefits Total Income 2000 $16,000 $0 $16,000 1600 $12,800 1200 $9600 800 $6400 400 $3200 $12,800 $16,000 0 $0 $16,000 $16,000 Complete the table. Is this program an example of a poverty trap? Explain your answer. If this program is an example of a poverty trap, how can this program be altered to avoid this problem?
Blinko estimates its average total cost be about $3 per hamburger when it sells 80 hamburgers a day. It estimates that it can sell a maximum of 100 hamburgers a day. It would like to earn a 10% return a day on its $200 in total investment in hamburger sales each day (counting pro-rated overhead costs) at the average sales level of 80 hamburgers a day. If Blinko uses cost-plus pricing what price should it set? Can it be sure of selling 100 hamburgers a day at this price? Assuming that Blinko wants to maximize its returns on hamburger sales, what are the arguments for and against using cost-plus pricing to do this?
A certain magical substance that is used to make solid magical spheres costs $500 per cubic foot. The power of a magical sphere depends on its surface area, and a magical sphere can be sold for $50per square foot of surface area. If you are manufacturing such a sphere, what size should you make them to maximize your profit per sphere?
Dejah earned $100,000 last year at her startup and wants to prepare for potential lean times. She plans to take a 20%20% salary decrease next year and will then take a 20%20% increase in the second year. One of her friends says, "That's not bad, Dejah. You will be back to your original salary in two years." Help Dejah explain to her friend that she will not be making her original salary in two years
An investor has $5000 to invest in three different accounts. One is low-risk,one is a medium-risk and the third is a high-risk investment. The low-risk account is expected to pay 5.2% interest, the medium-risk investment is expected to pay 6.7% interest and the high-risk investment is espected to pay10.3% interest. Due to her age, the investor is willing to invest twice as much money in the high-risk account as in the low-risk investment. How much money should be invested in each of the accounts to anticipate a return of 8% on the total investment.
You are thinking of making your home more energy efficient by replacing some of the light bulbs with compact fluorescent bulbs and insulating part or all of your exterior walls. Each compact fluorescent light bulb costs $4 and saves you an average of $2 per year in energy costs, and each square foot of wall insulation costs $1 and saves you an average of $0.20 per year in energy costs.† Your home has 60 light fittings and 1,200 square feet of uninsulated exterior wall. You can spend no more than $1,300 and would like to save as much per year in energy costs as possible. How many compact fluorescent light bulbs and how many square feet of insulation should you purchase? Please don't give handwritten answer..thanku

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