D1. 1.The major business of a company is making and selling calculators. The fixedcost is $35,000 per month, and the variable cost is $40 per calculator. The selling140 -0.02 D. The maximum output of the plant is 4,200price per unit is =Punits per month.(a) What is the breakeven volume in this case?(b) What is the company's rang of profitable demand?

Demand equation: p = 140 - 0.02 D---------------------------The fixed cost is $35000The variable…

The major business of a company is making and selling calculators. The fixed cost is $35,000 per month, and the variable cost is $40 per calculator. The selling price per unit is p = 140 -0.02 D. The maximum output of the plant is 4,200 units per month.

The major business of a company is making and selling calculators. The fixed cost is $35,000 per month, and the variable cost is $40 per calculator. The selling price per unit is p = 140 -0.02 D. The maximum output of the plant is 4,200 units per month.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

D1.

1.
The major business of a company is making and selling calculators. The fixed
cost is $35,000 per month, and the variable cost is $40 per calculator. The selling
140 -0.02 D. The maximum output of the plant is 4,200
price per unit is =
P
units per month.
(a) What is the breakeven volume in this case?
(b) What is the company's rang of profitable demand?

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