Rikana sells returnable containers to major food processors. The price received for the containers is Khs.300 per unit. Of this amount Khs.187.5 is profit contribution. Rikana is considering an attempt to differentiate its product through quality improvement at a cost of Khs.75 per unit. Current profits are Khs.6M on sales of 100,000 units. Assuming that average variable costs are constant at all output levels, find Rikanas total cost function before the proposed change. Calculate the total cost function if the quality improvement is implemented. Calculate Rikanas break-even output before and after the change, assuming it cannot increase its price. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to Khs. 6.75M.

Q: e) Make a graph with the CFT, CVT and CT. On the back it describes what the graphed curves mean f)…

A: Before making the graphs for parts e and f, we need to calculate the following table as you must…

Q: Use the following information to create a standard cost card for production of one photography drone…

A: Cost is the sum of the resources—including time, money, materials, and labor—used to create a good…

Q: It is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation…

A: GIVEN   It is demonstrated that sometimes extensive diseconomies of scale, say, due to high…

Q: A firm has the following information on production Q.6 and costs from past data: Output Total Cost…

A: The total cost function is an aggregate function of total fixed cost and total variable cost where…

Q: So that a firm break even  fixed cost $30,000 price=$8.90 variable cost per unit (avc)=7.40

A: Break-even point is where the total cost is equal to total revenue. It is the point where the firm…

Q: Identify each of Shen's costs in the following table as either an implicit cost or an explicit cost…

A: Implicit costs are the opportunity costs of using resources that a firm already owns. These costs…

Q: Quikpak sells returnable containers to major food processors. The price received for the containers…

A: In economics, the total cost of each element of production includes the entire opportunity cost…

Q: What will be the value of explicit cost of Rajan if the total revenue generated by him is $1300 and…

A: The information being given is :- We are given with the total revenue and accounting profit values…

Q: What is the price?  to make it breakeven

A: Average cost is total cost divided by total production while marginal cost is the change in total…

Q: 1. Minimize short (K fixed atK ) and long run cost of the following production technologies: a. q =…

A: A production function is a indispensable thought in economics that describes the relationship…

Q: Gooey Bites sells snack packs for $3 per pack. Variable expenses involved in producing snack packs…

A: The total cost function is the aggregate of all fixed and variable costs incurred in the process of…

Q: The fixed costs for a company are $1,596.00 per month, and their variable cost per unit is $3.20.…

A: Fixed cost = 1596  MC = 3.20

Q: The total cost and the total revenue (in dollars) for the production and sale of x ski jackets are…

A: Revenue refers to the total amount of money earned by a firm from the sale of its goods or services.…

Q: 3. In the short term, a company has the following cost function and product function. C(N)= 10 000 +…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 2. PewTooth®, the popular new startup company that manufactures the world's first-ever Bluetooth-…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: H(E) = aE – bE?, with a, b representing positive constants and E is fishing effort. Total cost is…

A: For a set of preset factor prices, the cost function finds the lowest cost of producing a specific…

Q: Myrtle Beach, South Carolina, is lined with virtually identical motels. Summertime rates run about…

A: Costs refers to the expenses that incur in the process of production of goods or services. There are…

Q: A company with two different plants manufactures guitars and banjos. Its production costs for each…

A: The cost of production of a firm involves costs of labor, raw materials, and capital. Out of the…

Q: ng started signment you will be working with models for price, revenue, cost and profit for a small…

A: A cost function is a formula that predicts the cost that will be incurred at a certain level of…

Q: Suppose f(x1, x2)= x1 1/3x21/2,w₁=w2=1,for pr ofit maximization, what is the long-run cost function?…

A: Given  Production function: fx1,x2=x11/3x21/2           ........(1) Input prices are w1= w2 = 1 We…

Q: j) If All-Leather produced the amount of leather given in your answer to (h), how much would Enjoy…

A: If All-Leather produced the socially optimal level of leather, which is 10,000 units, then Enjoy…

Q: Given the production and cost schedule for Laso Factory for tapes.Determine the average fixed cost…

A: Costs are the expenses that the firms have to incur in the production of goods and services. In the…

Q: Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: Azree an accountant, working for a foreign consultant firm and earning RM 78,000 per year is…

A: Explicit costs are the costs for a firm which it is paying out of its pocket, for example, payments…

Q: Please examine the table below. What is the Average Total Cost (ATC) of the fourth unit? Total…

A: Total cost is the cost faced by the producer for producing the goods and services and the Average…

Q: 4. Optimize the following function and comment about the findings. y =- 5x; +10x, + x,x, • 2x{ +4x;…

A: here we optimize the following function as given below;

Q: Suppose a firm produces 20 unit of output per month and has a total variable cost of R3000 per…

A: Here, given information is: Total output produced= 20 units Total variable cost per month= R3000…

Q: You start crearing personaize hone cases. Suppose the quantity of cases demanded each month is…

A: (a) The average (AC) costs refer to per unit cost of production. It is obtained by dividing total…

Q: Turner Overdrive produces 670,000 transmissions with a fixed cost of $8.2 million. It's average…

A: Average fixed cost is the fixed costs of production divided by the quantity of output produced.…

Q: Suppose a firm's total variable costs are given by TVC = 2.q° , and it has a fixed cost of 580 of…

A: In economics, the marginal cost (MC) or low cost is a change in the total value that results when…

Q: In Bushville, residents typically either work as salaried employees or owns small business on…

A: The objective of the question is to understand the concept of opportunity cost, how it affects the…

Q: You inherited your father's concrete company which typically pours slab foundations for single…

A: Variable costs are costs that change as the volume changes.  Fixed Cost: Fixed costs are expenses…

Q: Canning companies sell one can at a price of 30 dinars, and the fixed costs are 400 thousand dinars…

A: Price = 30 fixed Cost = 400,000 Variable Cost = 10 Sales amount = 50,000

Q: MC = 10q, ATC = 10/q+ 5q, AVC = 5 q, AFC = 10/q I would like to know how to plot them(in graph) in…

A: Cost curves are the curves that show the different amount of money incurred in producing different…