Cal Tech Inc. manufactures video games for "The Play Station III". Variable costs are estimated to be $20 per unit and fixed costs are $10,875. The demand-price relationship for this product is Q 1,000 - (4 x P) where P is the unit sales price of the game and Q is the demand in number of units. (a) Find the broolko

Cal Tech Inc. manufactures video games for "The Play Station III". Variable costs are estimated to be $20 per unit and fixed costs are $10,875. The demand-price relationship for this product is Q 1,000 - (4 x P) where P is the unit sales price of the game and Q is the demand in number of units. (a) Find the broolko

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and…

A: Given, Total cost (TC) = 500 + 10Q + 5Q2 Market demand Qd = 105 - (1/2)P Here, Q is the Quantity…

Q: A travel agency will plan a group tour for groups of size 35 or larger. If the group contains…

A: Given Revenue function: R(x)=35+x280-10x .... (1) Here x is the number of additional…

Q: A company determines that the demand function for a product can be modeled by p=220-0.02x where x is…

A: Profits are the excess of revenue receipts earned by a firm over the costs incurred in the…

Q: maximises profits

A: In the context of economics and business, profit maximization refers to the process by which a…

Q: The daily demand function for x LED lights sold by a major retailer is p = 715 - 0.75x dollars, and…

A: The demand function for LED light for a retailer: P=715−0.75x.Average cost function: AC=220+2x.To…

Q: Assume the demand for a particular product is given by p = 120 - q and firms produce at linear costs…

A: Answer = "Thank you for submitting the question. But, we are authorized to solve only 3 subparts .…

Q: If the firm is maximizing its profits when the price is $12, its total cost is: a) $1200 b) $700…

A: A competitive firm maximizes profit by producing at P=MC

Q: (a) Show that demand is a decreasing function (as expected). (b) Find the marginal revenue at…

A: The demand(DD) function is the relationship between the price(p) and the quantity demanded(x) to…

Q: Please show solution for this question. Determine the revenue (R) and cost (TC). The production…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a…

A: a) Demand, Q=400-0.5P0.5P= 400-QP=800-2QTC=20000+50QNow,Profit (π)=TR-TC =(PxQ)-TC…

Q: (a) What price yields a maximum profit? | per unit (b) When the profit is maximized, what is the…

A: ‘Total cost’: ‘Total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: Bavarian Crystal Works designs and produces crystal wine decanters for export to international…

A: Given, Demand function: P=1,000−0.0025QP=1,000-0.0025Q Fixed cost = $1,000,000 Variable cost = $200…

Q: A donut shp has a fixed cost of $92000 per day and a varibale cost of $2 for each donut produced. If…

A: Fixed cost per day is $92000 Variable cost for each donut is $2 Price for each donut is $5 For…

Q: For a company that manufactures wooden furniture the fixed costs is $900,000 per month. The variable…

A: A variable cost is a corporate expense that changes in proportion to how much a company produces or…

Question

Cal Tech Inc. manufactures video games for "The Play Station IlI". Variable costs are estimated to be
$20 per unit and fixed costs are $10,875.
The demand-price relationship for this product is Q = 1,000 - (4 x P) where P is the unit sales price of the
game and Q is the demand in number of units.
(а)
(b)
(с)
(d)
Find the breakeven quantity (or quantities).
What is the company's maximum possible revenue?
What profit would the company obtain by maximizing its total revenue?
What is the company's maximum possible profit?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

When the admission price for a baseball game was $4 per ticket, 50,000 tickets were sold. When the price was raised to $5, only 45,000 tickets were sold. Assume that the demand function is linear and that the variable and fixed costs for the ball park owners are $0.10 and $95,000 respectively. (a) Find the profit P as a function of x, the number of tickets sold. P(x) = (b) Select the graph of P. y 150000 y 150000 150 000 100 000 100 000 100 000 50 000 50 000 50 000 20000 40 000 60 00p 20000 40 000 60 000 20000 40 000 60 000 - 50 000 -50 000 -50 000 -100 000 100000 100000 The xy-coordinate plane is given. The curve starts at the approximate point (0, 3,000), goes up and right becoming less steep, and exits the window at the approximate point o-150000 O o-150000L O O (70,000, 69,000). 150000 100 000. 50 000- 20000 40 000 60 do0 - 50 000 100 000- o 150 000
leave answer in calculator ready form
I NEED THE ANSWER!!! THANK YOU!!!
Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per 100 unit. If demand function is given by p = L Determine the quantity that the company must sell to cover the fixed costs.
Do not use chatgpt.
ammm. 11
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.)
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 $
Suppose a company has fixed costs of $1500 and variable costs of (3/4)x + 1120 dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is 1200 − (1/4)x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.)x = (b) Find the maximum revenue. (Round your answer to the nearest cent)$ (c) Form the profit function, P(x), from the cost and revenue functions.P(x) = Find maximum profit. (Round your answer to the nearest cent.)$ (d) What price will maximize the profit? (Round your answer to the nearest cent.)
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 manufacturer of a new patented product has found that he can sell 70 units a week to the customer if the price is $48. In error, the price was recently advertised at $78 and as a result, only 40 units were sold in a week. The manufacturers fixed costs of production are $1,710 a week and variable costs are $9 per unit. You are required to: a. Show the equation of the demand function linking price (P) to quantity demanded (X) assuming it to be a straight line is P = 118-x
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?