Worldwide annual sales of a device in 2020-2024 were projected as q = -2.5p+1,830 million units at a selling price of $p per unit. Assuming a manufacturing cost of $100 per unit, what selling price would result in the largest annual profit? (Round your answer to two decimal places.) P= $416 ✔Nicely done. What is the resulting annual profit (in millions of dollars)? HINT [See Example 3, and recall that Profit= Revenue - Cost.] (Round your answer to the nearest whole number.) $ 252,200 X million

Worldwide annual sales of a device in 2020-2024 were projected as q = -2.5p+1,830 million units at a selling price of $p per unit. Assuming a manufacturing cost of $100 per unit, what selling price would result in the largest annual profit? (Round your answer to two decimal places.) P= $416 ✔Nicely done. What is the resulting annual profit (in millions of dollars)? HINT [See Example 3, and recall that Profit= Revenue - Cost.] (Round your answer to the nearest whole number.) $ 252,200 X million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What is the average time per unit required to complete the first 3 units of a production process if…

Q: Every year, Danielle Santos sells 53,856 cases of her Delicious Cookie Mix. It costs her $1 per year…

A: N = 53,856 F = 748 C1 = 1 C2 = 4

Q: The law of diminishing returns implies that Multiple Choice O O O O the more hours you spend…

A: According to the law of diminishing returns as one input variable is increased, there will…

Q: If Z~N(0,1), then what is Pr(Z > -0.11)?

A: Given information: Z is a standard normal distribution with a mean equal to 0 and variance equal to…

Q: You are serving as the chair for your community’s annual wellness campaign. A key event is the…

A: * Average variable cost:- When variable cost is divided by output amount, the result is the average…

Q: find the critical points, x*, for the following function, and for each critical point specify if it…

Q: Ms. Susan is renovating her townhouse for a total price of $18,000. The work will be done in a month…

A: The total price for renovation of the townhouse is $18000. The work gets over by a month and will be…

Q: pTork teaches guitar lessons in the guitar store, where he makes $32,000 per ESrear (which we can…

A: Discount rate; also called the hurdle rate, cost of capital, or required rate of return; is the…

Q: Linear

A: The simplex approach, general approach in linear programming for fixing an optimization problem,…

Q: Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole…

A: Inflation and interest rate: The inflation rate determines the growth rate of a nation's overall…

Q: Which of the following is not a data problem an analyst must watch for when estimating cost…

A: The problem revolves around the analysis of cost behavior, a pivotal aspect of financial management…

Q: Kim works as a physiotherapist. She currently earns a salary of $6479 per month. The only costs…

A: Economic loss refers to a financial deficit or negative economic outcome that occurs when an…

Q: ice cream producer has fixed costs of Php 3,500,000 per month, and it can produce up to 15,000 ice…

A: When sales income and costs attributed to a certain time are equal, a corporation experiences a…

Q: QH: Use the demand function D(p)=(p-10)^2 * (p+10)^2 for p values between 0 and 10. Suppose there is…

A: Answer -

Q: In 2022, a company estimates that $500,000 will be spent to produce a new product. If the company…

A: Cost of producing single unit = $4 Estimated cost for new product h $500,000 Expected sale =…

Q: 2. Nick is a row crop farmer who is currently growing 450 acres of conventional corn. He is…

A: Here we have to calculate the Additional Revenue, Reduced Revenue, Additional Costs and reduced…

Q: aken an industrial design course at Dubai Men's College to help prepare for this venture. The course…

A: Fixed cost = Small factory rent + Utility + Equipment rent + Advertising cost Fixed cost…

Q: A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy…

A: Break even Point : Break even point can be defined as a point below which no producer will sell as…

Question

**Problem Statement:**

Worldwide annual sales of a device in 2020–2024 were projected as $ q = -2.5p + 1,830 $ million units at a selling price of $ \$p $ per unit. Assuming a manufacturing cost of $ \$100 $ per unit, what selling price would result in the largest annual profit? (Round your answer to two decimal places.)

- $ p = \$416 $ ✅ Nicely done.

**Question:**

What is the resulting annual profit (in millions of dollars)? HINT [See Example 3, and recall that Profit = Revenue – Cost.] (Round your answer to the nearest whole number.)

- Input: $ \$252,200 $ million ❌

**Explanation:**

The problem involves determining the optimal selling price that maximizes annual profit, based on the provided linear sales projection equation and cost structure. The answer box input for profit was incorrect, indicating a calculation or rounding error.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Basic steps have been done in this step

VIEW

Step 2: Calcu

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assume a company expects to sell 6 million packages of Pop-Tarts Gone Nutty! in the first year after introduction but expects that 70 percent of those sales will come from buyers who would normally purchase existing Pop-Tart flavors (that is, cannibalized sales). The price for a package of Pop-Tarts Gone Nutty! is $1.30 and its variable cost is $0.65, when the price for a package of original Pop-Tart is $1.10 with variable cost of $0.30. Assuming the sales of regular Pop-Tarts are normally 300 million packages per year and that the company will incur an increase in fixed costs of $450,000 during the first year to launch Gone Nutty! will the new product be profitable for the company? Determine the unit contributions and the loss for every package cannibalized from the original product. (Round to the nearest cent.) Unit contribution original Pop-Tarts $ Pop-Tarts Gone Nutty! Loss for every package cannibalized S
If the FC = $200, the VC of the 9th unit is $400, and the VC of the 8th unit is $300, then ___: a) The MC curve is above the ATC curve at the 10th unit;b) The MC of the 8th unit is $80;c) The ATC of the 8th unit is $80;d) The AVC of the 8th unit is $75.
ABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases 100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 inoverhead costs, and equipment costs $600 a day to operate. (a). How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)? (b). What is the single-factor productivity for labor, per workday (8 hours)? Whatis the multi-factor productivity, for every dollar spent per shipping bag?
The time to assemble the first unit on a production line is 11 hours. The learning rate is 0.86. Approximately how long will it take for the fifth unit to be assembled? The number of hours needed for the fifth unit to be assembled is hours. (Round to one decimal place.)
Given: TC = 3,000 + 100Q TC = 3000 + 100Q ATC = Q = 10 AC = TC / Q TC = 3000 + 100*10 = 4000 ATC = 4000/10 = 400 MC = ∆TC / ∆Q = 100 How do you figure the Fixed Cost with Fomula?
You manufacture ceramic lawn ornaments. After several months your accountant tells you that your profit P(n) can be modeled by the function P(n)= -0.002n^2+5.2n-1208 where n is number of ornaments sold each month. A) How many ornaments must you make and sell to break even. B) How many ornaments must you make and sell to maximize profit. C) What is the maximum profit. D) How many ornaments must you make and sell in order to earn a profit of $1657.
(You will need to use a spreadsheet to tackle these questions.) 1. How much of q can be produced for £60,000 if the total cost function is TC = 86 + 152q − 12q2 + 0.6q3? 2. What output can be produced for £150,000 if TC = 130 + 62q − 3.5q2 + 0.15q3? 3. Solve for x when 0 = −1,340 + 14x + 2x2 − 1.5x3 + 0.2x4 + 0.005x5 − 0.0002x6
type plz
Show the solution step by step
Suppose that the production function takes the form X = min(10L, 5K) and that a competitive firm faces a wage rate of £60 per week and a weekly capital rental of £32. (a) How much must the firm spend to produce 100 units of output, and what is the average cost of production when X = 100? (b) What is the incremental cost of producing the 101st unit of output? (c) What happens to the cost of producing 100 units of output if the wage rate and the rental cost of capital rise by 25 per cent each? What happens to the average and marginal cost? (d) What happens to the cost of producing 100 units of output if the wage rate increases by £1, or if the cost of capital increases by £1?