Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
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The Marketing Manager of Dotcom Limited has conducted a market research on the price-demand
relationship for its consumer durable Product-V which has been recently launched. The price-demand
pattern will be as follows:
Price per unit (Rs.)
16.650
16.050
14.400
13.050
Product-V is manufactured in batches of 1.000 units. The production manager of Dotcom Limited has
also researched and studies the pattern and believes that 50% of the variable manufacturing cost would
have a learning effect. This learning curve effect will continue up to 4.000 units of production at constant
rate But after 4.000 units of production unit variable manufacturing cost would be equal to the unit cost
at the 4 batch. The manufacturing unit cost of the first batch will be Rs. 6.600 of which only 50% is
subjected to learning and experience curve effect. The average unit variable of all 4 batches will be
Rs 6.180
The price and maximum contribution at which Dotcom Limited should sell Product-V is:
Rs.14,400, Rs.…
LPM Corp. produces and sells two types of frozen burgers, Turkey Burgers and Veggie Burgers. In the most recent month, the firm sold 12,000 Turkey Burgers and 8,000 Veggie Burgers. Turkey Burgers sold for $14.00 per box and variable costs were $7.40 per box. The Veggie Burgers sold for $16.00 per box and variable costs were $8.25 per box. The fixed expenses of the entire company were $41,160.
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