Question
In: Economics
ABC Inc. has developed the following equations relating the selling price, quantity sold and cost to...
ABC Inc. has developed the following equations relating the selling price, quantity sold and cost to produce. To maximize profit, determine the quantity the company has to produce in a year?
P = $35Q - 0.02Q2
C = $4 Q + $8,000
Where P is Selling price in $/unit, Q is Quantity sold per year, and C is cost to produce and sell Q units per year
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
ABC Inc. manufactures and sells toys. Price and cost data are as follows: Selling price per...
ABC Inc. manufactures and sells toys.
Price and cost data are as follows:
Selling price per unit (package of 2
CDs)......................................
$20.00
Variable costs per unit:
Direct
material...............................................................................................................
$4.00
Direct
labor......................................................................................................................
$5.00
Artist's
royalties..............................................................................................................
$3.50
Manufacturing
overhead..........................................................................................
$3.00
Selling
expenses............................................................................................................
$1.00
Total variable costs per
unit............................................................
$16.50
Annual fixed costs:
Manufacturing
overhead..........................................................................................
$180,000
Selling and
administrative.......................................................................................
$220,000
Total fixed
costs................................................................................
$400,000
Forecasted annual sales volume (120,000
units).........................
$2,400,000
If the company's direct-labor costs do increase by 8%,
what selling price...
ABC corporation raises the price of its product by 21% and as a result, quantity sold...
ABC corporation raises the price of its product by 21% and as a
result, quantity sold falls from 350 units a week to 310. (Hint,
the denominator has a % in it. So, you will need to be careful with
what you do in the numerator. Do not cancel things that cannot be
cancelled!)
7.1.
The elasticity of demand for their product is ______:
ABC corporation raises the price of its product by 21% and as a
result, quantity sold...
The quantity, q, of a certain skateboard sold depends on the selling price, p, in dollars,...
The quantity, q, of a certain skateboard sold depends
on the selling price, p, in dollars, so we write
q = f(p). You are given that
f(100) = 15200 and f '(100) = −90.
(a) What does f(100) = 15200 tell you about the sales
of skateboards?
When the price of the skateboard is $_________ , then ______
skateboards will be sold.
What does f '(100) = −90 tell you about the sales of
skateboards?
If the price increases from...
Solving the following system of equations, which is a model of price and quantity determination in...
Solving the following system of equations, which is a model of
price and quantity determination in a one-good, widget, market:
Qd = 100– 10P + 2G …..(1)
Qs = 60 + 20P - 3N……….(2)
Q = Qd =
Qs………………… ..(3)
G= 11 …………………………(4)
N= 6 …………………………..(5)
(i) Find
the equilibrium values of P and Q.
(ii) If
G is up by 2 and other things are equal, What will be the new P and
Q.
(iii) If
N is up by...
Special Order Review company has the following information relating to their plastics factory Current Selling Price...
Special Order Review company has the following information
relating to their plastics factory
Current Selling Price $10.00
Current Monthly Production 15,000 units
Total Direct Materials ( all Variable) $45,000.00
Total Direct Labor (all variable) $15,000.00
Total Overhead (50% variable) $50,000.00
Total Marketing Cost (75% variable) $30,000.00
A new customer has offered to buy 3000 units but will pay only
$7.50. The special order will incur additional costs of $1.50 per
unit but there will be no additional marketing costs paid....
Franklin, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Franklin, Inc. sells fireworks. The company’s marketing director
developed the following cost of goods sold budget for April, May,
June, and July.
April
May
June
July
Budgeted cost of goods sold
$73,000
$83,000
$93,000
$99,000
Franklin had a beginning inventory balance of $3,800 on April 1
and a beginning balance in accounts payable of $15,100. The company
desires to maintain an ending inventory balance equal to 15 percent
of the next period’s cost of goods sold. Franklin makes all
purchases...
Campbell, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Campbell, Inc. sells fireworks. The company’s marketing director
developed the following cost of goods sold budget for April, May,
June, and July.
April
May
June
July
Budgeted cost of
goods sold
$77,000
$87,000
$97,000
$103,000
Campbell had a beginning inventory balance of $4,400 on April 1
and a beginning balance in accounts payable of $14,900. The company
desires to maintain an ending inventory balance equal to 15 percent
of the next period’s cost of goods sold. Campbell makes all
purchases...
Rooney, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Rooney, Inc. sells fireworks. The company’s marketing director
developed the following cost of goods sold budget for April, May,
June, and July.
April
May
June
July
Budgeted cost of goods sold
$64,000
$74,000
$84,000
$90,000
Rooney had a beginning inventory balance of $3,100 on April 1
and a beginning balance in accounts payable of $14,700. The company
desires to maintain an ending inventory balance equal to 15 percent
of the next period’s cost of goods sold. Rooney makes all purchases...
Campbell, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Campbell, Inc. sells fireworks. The company’s marketing director
developed the following cost of goods sold budget for April, May,
June, and July.
April
May
June
July
Budgeted cost of goods sold
$61,000
$71,000
$81,000
$87,000
Campbell had a beginning inventory balance of $3,400 on April 1
and a beginning balance in accounts payable of $15,700. The company
desires to maintain an ending inventory balance equal to 15 percent
of the next period’s cost of goods sold. Campbell makes all
purchases...
Baird, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Baird, Inc. sells fireworks. The company’s marketing director
developed the following cost of goods sold budget for April, May,
June, and July.
April
May
June
July
Budgeted cost of
goods sold
$69,000
$79,000
$89,000
$95,000
Baird had a beginning inventory balance of $4,400 on April 1 and
a beginning balance in accounts payable of $15,200. The company
desires to maintain an ending inventory balance equal to 20 percent
of the next period’s cost of goods sold. Baird makes all purchases...
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