Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: a weekly demand of 308 at a price of $15 per toaster a weekly demand of 206 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,362 and variable costs (cost per unit) will be $3. Assume: the relationship between price and demand is linear the cost function in linear Use your models to predict the marginal profit when Yaster is producing and selling 264 toasters per week. Round to the nearest cent.
Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: a weekly demand of 308 at a price of $15 per toaster a weekly demand of 206 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,362 and variable costs (cost per unit) will be $3. Assume: the relationship between price and demand is linear the cost function in linear Use your models to predict the marginal profit when Yaster is producing and selling 264 toasters per week. Round to the nearest cent.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates:
- a weekly demand of 308 at a price of $15 per toaster
- a weekly demand of 206 at a price of $17 per toaster
The financial department estimates that weekly fixed costs will be $1,362 and variable costs (cost per unit) will be $3.
Assume:
- the relationship between price and demand is linear
- the cost function in linear
Use your models to predict the marginal profit when Yaster is producing and selling 264 toasters per week. Round to the nearest cent.
$_______ per toaster
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Substitute the value of a in the first demand equation, to get
308(-2)/102+b=15⇒-616/102+b=14⇒b=2044/102
Why in the solution above the 15 change to a 14 and when I calculate it using the 14 I only get 1022/51?
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