Q2. A company manufactures and sells wallets. The selling price is 54.90 AED per wallet. The total cost function is linear, and costs amount to 50,000 AED for 2000 wallets and 32,120 AED for 800 wallets. a) Find the cost function. b) Find the break-even quantity.

Q2. A company manufactures and sells wallets. The selling price is 54.90 AED per wallet. The total cost function is linear, and costs amount to 50,000 AED for 2000 wallets and 32,120 AED for 800 wallets. a) Find the cost function. b) Find the break-even quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q2.
A company manufactures and sells wallets. The selling price is 54.90 AED per wallet. The total
cost function is linear, and costs amount to 50,000 AED for 2000 wallets and 32,120 AED for 800
wallets.
a) Find the cost function.
b) Find the break-even quantity.

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