Problem 11-15 (algo)The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increasein the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types ofcancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins inpackages of three. However, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P = 7- 0.5Q.If your cost of producing bran muffins is C(Q) = 2.5Q, determine the optimal number of bran muffins to sell in a single package and theoptimal package price.Instructions: Enter your response for the optimal package price rounded to two decimal places.Optimal package size: 9✔ unitsOptimal package price: $951.75 Ⓡ

Optimal level of price and quantity demanded is the level where there is equilibrium of demand and…

Answered: Optimal package size: 9 Optimal package…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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when a product price is $12 , quantity demanded is equal to 950; when the price is reduced to $8 , quantity demanded increase to 1050 based on above data , the price elacity of demand coefficiant is equal to : (a) 0.5 (b) 4 (c) 0.25 (d) 5
EMERGENCY! Production just informed management that one of its five glycol squeezers has been destroyed by a rogue computer virus. Production capability is now only 23000 gallons at most. The squeezer cannot be fixed and IceLess cannot afford a replacement. This breakdown will NOT lower fixed costs. This breakdown will not change variable cost per unit, either. If only 23000 gallons are produced, and the earning target remains $94400 above fixed costs, what price per gallon must now be charged? (show your calculations What is the Contribution Margin Ratio (CMR) if the price is $8.82 per gallon? At a price of $10.95 per gallon, what will be the DOL (assume 23000 gallons are sold , that $94400 above fixed costs is to be earned, and that other costs are as initially given)(show your calculations).
tc(q)=4800+5q** find the ATC ATC=TC/q
Smith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is used commercially and is quite popular with golf course greens keepers. In producing these sprinklers Smith’s fixed cost (CF) is $50,000 per month with a variable cost (cv) of $10 per unit. The selling price for these high-end sprinklers is described by the equation p=$90 – 0.2(D). a) What is the optimal volume of sprinklers? b) Does Smith make a profit at that volume? Thank you.
At the break-even point of 2000 units, variable costs are $55000, and fixed costs are $32000. How much is the selling price per unit? $11.5 $43.5 $16 $27.5
Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)
(b) Power Converters are an input in the manufacture of X-34 Landspeeders. (i) Draw a correctly labeled graph of the market for X-34 Landspeeders indicating the equilibrium price and quantity, labeled PO and Q0, respectively.
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A manufacturer of dishwashers is preparing to set the price on a new design. Demand is thought to depend on the price and is represented by D = 2100 – 4.3P The accounting department estimates that the total costs can be represented by C = 4840 + 6.2D (a) Develop a model for the total profit in terms of the price, P. (b) What will be the total profit if the price is $380.
compute a piece rate for an employee earning $17.75/hour where the standard time per unit is ten (10) minutes

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Optimal package size: 9 Optimal package price: $951.75 units