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.
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.
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F64b640cf-b7c5-4c1c-ad5e-cf2092511e50%2Fd37d700c-4fa1-47c9-92fa-8f6aba6232b3%2Fkmnq25v_processed.jpeg&w=3840&q=75)
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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