Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 8, Problem 7P
(a):
To determine
Output.
(b):
To determine
Calculate the contribution margin.
(c):
To determine
New output.
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Students have asked these similar questions
The cost, in dollars, of producing x yards of a certain fabric is
C(x) = 900 + 12x - 0.1x² +0.0005x³
and the company finds that if it sells x yards, it can charge p(x) = 27-0.00021x dollars per yard for the fabric.
(a) Graph the cost and revenue functions.
y
8000
6000
4000
2000
y
15 000
10 000
5000
R
C
100
R
=²
C
100
200
200
300
300
X
400
400
X
Use the graph to estimate the production level for maximum profit.
283.092
x yards
y
15 000
10 000
5000
y
15 000
10 000
5000
R
100
R
C
100
200
200
(b) Use calculus to find the production level for maximum profit. (Round your answer to two decimal places.)
186.63
yards
300
300
400
400
X
If company A manufactures t-shirts and sells them to retailers for US$9.80 each.
It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15 −x
125, its production cost per unit is US$5.00
and its fixed cost are the same as for company A .
(i) Derive the total revenue function, R(x) for company A.
(ii) Derive the total cost function, C(x) for company A.
(iii) Derive the profit function, Π(x) for company A.
(iv) Using a spreadsheet, create a table for showing x, R(x)?, C(x) for company A in the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450.(v) Graph the functions from (d) above on the same axes.
(vi) From your graph, determine the break-even level of output for company A.
(vii) Derive the total revenue function, R(x) for company B.
(viii) Derive the profit…
Suppose a company has fixed costs of $600 and variable costs per unit of x + 1130 dollars, where x is the total number of units produced. Suppose further that the selling price of its
²x
product is 1200 - 1x dollars per unit.
(a) Find the break-even points. (Enter your answers as a comma-separated list.)
x = 10,60
(b) Find the maximum revenue.
$ 2880000
(c) Form the profit function P(x) from the cost and revenue functions.
P(x) =
1200x -
31²) - (600 + 1² +1130x)
Find the maximum profit.
$ 625
(d) What price will maximize the profit? (Round your answer to the nearest cent.)
$ 35
X
Chapter 8 Solutions
Contemporary Engineering Economics (6th Edition)
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