QUESTION #10 Triangle Ice Company sells 10-lb bags of ice to retailers for $1.10 per bag. The production cost per bag (including delivery to the retailer) is $0.80 and the weekly fixed costs are $8400. a. Determine the revenue R from selling x bags of ice in a week. b. Determine the cost C of producing and delivering x bags per week. c. Determine the profit P from selling and delivering x bag in a week.
QUESTION #10 Triangle Ice Company sells 10-lb bags of ice to retailers for $1.10 per bag. The production cost per bag (including delivery to the retailer) is $0.80 and the weekly fixed costs are $8400. a. Determine the revenue R from selling x bags of ice in a week. b. Determine the cost C of producing and delivering x bags per week. c. Determine the profit P from selling and delivering x bag in a week.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 14CQ
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![QUESTION #10 Triangle Ice Company sells 10-lb bags of ice to retailers for
$1.10 per bag. The production cost per bag (including delivery to the
retailer) is $0.80 and the weekly fixed costs are $8400.
a. Determine the revenue R from selling x bags of ice in a week.
b. Determine the cost C of producing and delivering x bags per week.
c. Determine the profit P from selling and delivering x bag in a week.
d. Determine the break-even point.
e. Graph R and C together and label the break-even point.
f. Graph P and label its x-intercept.
g. Comment on the relationship between the break-even point and the
x-intercept.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf58eb6e-9817-408d-af52-50a3baf8f42f%2Ff759f0bb-88ef-41bc-ba4d-9efbeb26eff3%2Fy3e9co6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION #10 Triangle Ice Company sells 10-lb bags of ice to retailers for
$1.10 per bag. The production cost per bag (including delivery to the
retailer) is $0.80 and the weekly fixed costs are $8400.
a. Determine the revenue R from selling x bags of ice in a week.
b. Determine the cost C of producing and delivering x bags per week.
c. Determine the profit P from selling and delivering x bag in a week.
d. Determine the break-even point.
e. Graph R and C together and label the break-even point.
f. Graph P and label its x-intercept.
g. Comment on the relationship between the break-even point and the
x-intercept.
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