Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and variable costs data, combined fixed costs equal $540,000. Models Infinity A Pro Max Infinity A Pro Infinity A Infinity A Lite Selling Price (in dollars) 500 400 340 220 Material Cost /unit (in dollars) 220 190 150 90 Labor Cost/unit (in dollars) 90 65 65 50 Table 1 a) Develop a joint total revenue function for sales of the four different models. b) Develop an annual total cost function for manufacturing the four models. c) Develop the profit function for sales of the four models. d) Calculate the annual profit if the firm sells 9000, 12000, 45000 and 22000 units, respectively, of the four models
Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and variable costs data, combined fixed costs equal $540,000. Models Infinity A Pro Max Infinity A Pro Infinity A Infinity A Lite Selling Price (in dollars) 500 400 340 220 Material Cost /unit (in dollars) 220 190 150 90 Labor Cost/unit (in dollars) 90 65 65 50 Table 1 a) Develop a joint total revenue function for sales of the four different models. b) Develop an annual total cost function for manufacturing the four models. c) Develop the profit function for sales of the four models. d) Calculate the annual profit if the firm sells 9000, 12000, 45000 and 22000 units, respectively, of the four models
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and variable costs data, combined fixed costs equal $540,000.
Models
Infinity A Pro Max
Infinity A Pro
Infinity A
Infinity A Lite
Selling Price (in dollars)
500
400
340
220
Material Cost /unit (in dollars)
220
190
150
90
Labor Cost/unit (in dollars)
90
65
65
50
Table 1
a) Develop a joint total revenue function for sales of the four different models.
b) Develop an annual total cost function for manufacturing the four models.
c) Develop the profit function for sales of the four models.
d) Calculate the annual profit if the firm sells 9000, 12000, 45000 and 22000 units, respectively, of the four models?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education