Question

In: Economics

A Company produces and sells two types of smart phones. The price of Type-1 and Type...

A Company produces and sells two types of smart phones. The price of Type-1 and Type –II smart phone assigned by Hamza is Rs. 120,000 per unit and 135,000 respectively. Variable cost for producing type-I phone is Rs. 150,000 and type –II is Rs. 300,000. Suppose there is Rs. 500,000 fixed cost.1. Formulate revenue and cost function for type-I and type-II smart phone jointly.2. Formulate total profit function3. What will be the total profit if Hamza produces and sells 500 sets of type-I and 750 sets of type – II.

Solutions

Expert Solution

The correct answer with step by step explanation is given below:

Note!

As it is not mentioned whether the variable cost for both the products is per unit or total variable cost, it has been assumed that it is total variable cost and accordingly the cost function has been derived. If you want to take it variable cost per unit then simply multiply it with number of units.

1.

2.

3.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

KPhone produces quality smart phones. Its factory produces two popular models: the KPhone Pro and the...
KPhone produces quality smart phones. Its factory produces two popular models: the KPhone Pro and the KPhone Pro Max. At the beginning of the year, the following planned production information was tabled to assist in cost planning: Pro Max Pro Quantity planned 100,000 800,000 Selling Price $1,650.00 $900.00 Unit prime cost $530.00 $483.00 In addition, the following information was provided for calculating overhead costs for each phone. Activity Name Activity Driver Total Activity Cost Pro Max Pro Setups Number of...
1. An operations manager at a factory that produces rechargeable batteries for smart phones wants to...
1. An operations manager at a factory that produces rechargeable batteries for smart phones wants to determine if the new brand of battery that they are producing is superior to their original design. Sample Average Life Standard Dev. Old 25 6.5 hours 1.25 hours New 35 7.2 hours 0.75 hours Using a 0.01 level of significance and assuming equal variances, identify the alternative hypothesis to these the claim that the new brand of batteries is superior to the original design....
1. An operations manager at a factory that produces rechargeable batteries for smart phones wants to...
1. An operations manager at a factory that produces rechargeable batteries for smart phones wants to determine if the new brand of battery that they are producing is superior to their original design. Sample Average Life Standard Dev. Old 25 6.5 hours 1.25 hours New 35 7.2 hours 0.75 hours Using a 0.01 level of significance and assuming equal variances, identify the alternative hypothesis to these the claim that the new brand of batteries is superior to the original design....
Burntt, Inc. produces and sells two products: phones and tablets. Reinhardt plans to sell 500,000 phones...
Burntt, Inc. produces and sells two products: phones and tablets. Reinhardt plans to sell 500,000 phones and 100,000 tablets in the coming year. Product price and cost information includes: Phones Tablets Price $850.00 $575.00 Unit Variable Cost $390.00 $250.00 Direct Fixed Cost $335,000 $178,000 Common fixed selling and administrative expenses total $187,600. Part A What is the sales mix estimated for next year? Part B Using the sales mix from Part A, determine how many phones and tablets should be...
Q / The National Dairy Company produces two types of milk (type A and type B),...
Q / The National Dairy Company produces two types of milk (type A and type B), each type needs three operations to complete its production (sterilization and packaging) required to design an engineering problem and complete the formulation of the question and the problem so that it includes all the required information: 1- Determine the time of manufacturing the type A product for the three manufacturing processes (sterilization, packing and packaging) so that the manufacturing time for this product is...
It sells to two types of consumers: medical (type 1) and academic type 2). The lab...
It sells to two types of consumers: medical (type 1) and academic type 2). The lab equipment manufacturer identifies the following demands for its two differentiated consumers: P1= 500 - Q1 P2= 300-Q2 The marginal cost to produce and sell the equipment is $50 regardless of the consumer. Assume that the equipment company can identify each type of consumer before the point of scale. a. What would be the optimal two-part pricing strategy for each type of consumer? b. Which...
A company produces two types of solar panels per​ year: x thousand of type A and...
A company produces two types of solar panels per​ year: x thousand of type A and y thousand of type B. The revenue and cost​equations, in millions of​ dollars, for the year are given as follows. R(x,y)=4x+5y C(x,y)= x^2- 2xy+ 7y^2 +6x - 93y - 8 Determine how many of each type of solar panel should be produced per year to maximize profit. Part 1-The company will achieve a maximum profit by selling ____ solar panels of type A and...
A company produces two types of solar panels per​ year: x thousand of type A and...
A company produces two types of solar panels per​ year: x thousand of type A and y thousand of type B. The revenue and cost​equations, in millions of​ dollars, for the year are given as follows. R(x,y)=4x+6y C(x,y)= x^2- 2xy+ 6y^2 +8x - 38y - 6 Determine how many of each type of solar panel should be produced per year to maximize profit. Part 1-The company will achieve a maximum profit by selling ____ solar panels of type A and...
A company produces two types of solar panels per​ year: x thousand of type A and...
A company produces two types of solar panels per​ year: x thousand of type A and y thousand of type B. The revenue and cost​ equations, in millions of​ dollars, for the year are given as follows. ​R(x,y)equals=3x+5y ​C(x,y)equals=x^2-3xy+7y^2+12x-56y-2 Determine how many of each type of solar panel should be produced per year to maximize profit.
A company sells two types of life insurance policies (P and Q) and one type of...
A company sells two types of life insurance policies (P and Q) and one type of health insurance policy. A survey of potential customers revealed the following: i) No survey participant wanted to purchase both life policies. ii) Twice as many survey participants wanted to purchase life policy P as life policy Q. iii) 45% of survey participants wanted to purchase the health policy. iv) 18% of survey participants wanted to purchase only the health policy. v) The event that...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT