Variable costs for a product is $60 and fixed costs (including staff salaries, and maintenance) amount to $4000 per month. The price of product A is $113. The company operates only 26 days a month and produces 125 units per day. But during one-weekday demand was 115 units. The cost of lost sales is $9 per unit. Leftover products can be sold for $50 per unit. What was the total profit for this one day?
Variable costs for a product is $60 and fixed costs (including staff salaries, and maintenance) amount to $4000 per month. The price of product A is $113. The company operates only 26 days a month and produces 125 units per day. But during one-weekday demand was 115 units. The cost of lost sales is $9 per unit. Leftover products can be sold for $50 per unit. What was the total profit for this one day?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Variable costs for a product is $60 and fixed costs (including staff salaries, and maintenance) amount to $4000 per month. The price of product A is $113.
The company operates only 26 days a month and produces 125 units per day. But during one-weekday demand was 115 units.
The cost of lost sales is $9 per unit. Leftover products can be sold for $50 per unit.
What was the total profit for this one day?
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education