Q5/ A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is Sso0000 per month. The variable cost per thousand board feet is $121. The price charged will be determined by p=$700 – (0.05) D per 1,000 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume. b. What is the domain of profitable demand during a month?
Q5/ A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is Sso0000 per month. The variable cost per thousand board feet is $121. The price charged will be determined by p=$700 – (0.05) D per 1,000 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume. b. What is the domain of profitable demand during a month?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section7.3: Pricing Models
Problem 2P
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![Q5/ A large wood products company is negotiating a contract to sell plywood overseas. The fixed
cost that can be allocated to the production of plywood is $800000 per month. The variable cost
per thousand board feet is $121. The price charged will be determined by
p= $700 – (0.05) D per 1,000 board feet.
a. For this situation, determine the optimal monthly sales volume for this product and calculate
the profit (or loss) at the optimal volume.
b. What is the domain of profitable demand during a month?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d4b3975-0ec9-4e2f-b78e-7e59223f2c85%2Fc52b35c6-7e04-4d0c-8d04-0d95d2f151c1%2F63zrpas_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q5/ A large wood products company is negotiating a contract to sell plywood overseas. The fixed
cost that can be allocated to the production of plywood is $800000 per month. The variable cost
per thousand board feet is $121. The price charged will be determined by
p= $700 – (0.05) D per 1,000 board feet.
a. For this situation, determine the optimal monthly sales volume for this product and calculate
the profit (or loss) at the optimal volume.
b. What is the domain of profitable demand during a month?
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