ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 2, Problem 18P
To determine

To calculate:The range of production.

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A producer of ceramic toys is considering the addition of a new plant to absorb the backlog of demand that now exists .The primary location being now considered will have fixed costs of $9200 per month and variable costs of 0.70$ per unit produced .Each item is sold to retailers at an average price of 0.90$.(i) What volume per month is required for Break Even (ii) What profit is realized at a monthly volume of 87000 units (iii)What volume is needed to achieve a profit of $16000 per month (iv)What volume is needed to provide a revenue of $23000 per month
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 sell 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. Derive the total revenue function, R(x) for company. Derive the profit function, Π(x) for company. How many t-shirts must company B sell to in order to break-even? How many t-shirts must company B sell to maximize its profit?
A particular product has a unit price that starts at $78 with a $0.1 discount for each unit purchased. If the fixed cost is $800/month and the variable cost per unit is $30/unit, determine the demand quantity that maximizes the savings of making and the breakeven quantities.   (Nonlinear Breakeven Analysis)
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