Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses?
Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair.
A.Write the cost function, C, of producing x running shoes.
B.Write the revenue function, R, from the sale of x running shoes.
C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses?
D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit?
E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.
Dear Student as per Bartleby guideline we can answer only three sub-parts in a question has more than three sub-parts therefore to get answer of remaining sub-part please re-post this question with remaining sub-parts.
The Total Cost is :
Total Revenue is :
(A) Cost function :
If Fixed cost ignore -
If Fixed cost consider -
Production Cost = $ 30x + $ 300000
(B) Revenue Function :
Revenue = $ 80 x
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