Question 15 A firm sells mid-range snowboards and estimates its demand curve to be Q =...

Question 15

A firm sells mid-range snowboards and estimates its demand curve to be Q = 14,200 – 31(P). Variable costs are $268. At what price does the firm's total contribution margin equal zero?

Question 16

The Pampered Pooch sells high-end pet furniture, specializing in small breed dogs. The most popular item is the memory foam dog bed, with the following demand curve: Q = 20,400 – 211(P). While expensive, the bed comes with a washable cover and free shipping. Variable costs run at $47.

At what quantity sold will total contribution margin be maximized? Round your answer to the nearest dog bed.

Expert Solution

Answer is as follows:

jeff jeffy answered 2 years ago

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