Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 8, Problem 11P
(a):
To determine
Calculate the breakeven point.
(b):
To determine
Calculate the new breakeven point.
(c):
To determine
Selection of product.
(d):
To determine
New selection of product.
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Students have asked these similar questions
The price p and the quantity x sold of a certain product obey the demand equation below.
x= -8p +176, 0sps22
(a) Express the revenue R as a function of x.
(b) What is the revenue if 144 units are sold?
(c) What quantity x maximizes revenue? What is the maximum revenue?
(d) What price should the company charge to maximize revenue?
(e) What price should the company charge to earn at least $576 in revenue?
(a) R(x) =
Panther Acre Cattle Company - Chapter 7 Lab
A typical farm or ranch problem is determining the optimum or profit-maximizing weight to sell
fed cattle. Assume the feeder cattle are purchased at 600 pounds. The feed required and the
weight gain is shown in the table below. Feed costs 7¢ per pound and feeder cattle prices are as
follows:
Weight
Price per Pound
600-899 lbs
72¢
go to 3rd
900-1099 lbs
decimal
1100 lbs or more
70¢
Point
67¢
Pay attention to the price changes when computing MVP.
Input
Output
Feed
Weight
Selling
Required Gain
Weight
Total Average Marginal Marginal Marginal
Revenue Physical Physical Value
Input
(lbs)
(lbs)
(lbs)
Product
Product
Product
Cost
600
0
0
600
432
XXX
XXX
XXX
XXX
500
50 So
650
468
0.10
0.083
1,100
145 as
745
536.40 0.132
6.158
1,700
235 aol
835
601.20
0.138
0.15
2,300
320 85
920
644
0.139
2,900
400 80
1,000
700
0.138
3,500
465 65
1,065
745, 50 0.133
4,100
525 60
1,125
753.75 0.128
4,700
575 SO
1,175
787.25 0.122
5,300
615 40
1,215
814.05 0.116
5,900
645…
Sub-part to be solved
iv) what charge should the company charge to maximize revenue?
v)What price should the company charge to earn at least$3500 in revenue?
Chapter 8 Solutions
Contemporary Engineering Economics (6th Edition)
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