The major business of a company is making and selling calculators. The fixed cost is $35,000 per month, and the variable cost is $40 per calculator. The selling price per unit is p = 140 -0.02 D. The maximum output of the plant is 4,200 units per month.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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D1.

 

1.
The major business of a company is making and selling calculators. The fixed
cost is $35,000 per month, and the variable cost is $40 per calculator. The selling
140 -0.02 D. The maximum output of the plant is 4,200
price per unit is =
P
units per month.
(a) What is the breakeven volume in this case?
(b) What is the company's rang of profitable demand?
Transcribed Image Text:1. The major business of a company is making and selling calculators. The fixed cost is $35,000 per month, and the variable cost is $40 per calculator. The selling 140 -0.02 D. The maximum output of the plant is 4,200 price per unit is = P units per month. (a) What is the breakeven volume in this case? (b) What is the company's rang of profitable demand?
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