A wireless Bluetooth headphone manufacturer has a variable cost are $20 per unit, and fixed costs...

A wireless Bluetooth headphone manufacturer has a variable cost are $20 per unit, and fixed costs are $10,875. The company’s management has developed a price-demand relationship for this wireless headphone, P=-0.25D+250, where P is the product’s unit sales price, and D is the annual demand.

2.1. The breakeven volume for this product is ____________. Show your steps for getting full credit.

A) 920

B) 870

C) 790

D) None of these

2.2. Determine the number of wireless headphones the company should produce to maximize its total revenue? Show your steps for getting full credit.

A) 200

B) 250

C) 500

D) None of these

2.3. Determine the number of wireless headphones the company should produce to maximize its profit? Show your steps for getting full credit.

A) 420

B) 460

C) 480

D) None of these

2.4. Based on the answer computed in 2.3, the maximum profit earned by the company will be equal to ________________. Show your steps for getting full credit.

A) 42025

B) 41625

C) 41925

D) None of these

2.5. The learning curve percentage is 80% if the learning curve exponent is given as -0.3214. (True or False) Show your steps for getting full credit.

A) True

B) False

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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