What is the selling price that maximizes revenue

Assignment Help Financial Accounting
Reference no: EM13746980

Suppose that the price at which q thousand flash drives can be sold is given by the demand equation

p = 12-0.4q dollars per drive, where 0\leq q\leq 22. In addition, the cost of producing q thousand drives is given by the cost function: C(q)=26+0.85q thousand dollars.

1. Let R(q) denote the corresponding revenue function. Sketch a graph of both R(q) and C(q) on the same set of axes. Show only what is relevant.

2. Find the level of production (to the nearest flash drive) that maximizes revenue.

3. What is the selling price (per flash drive) that maximizes revenue?

4. What is the maximum possible revenue?

5. Find all break-even production levels, to the nearest flash drive.

6. Determine the level of sales that results in revenue of at least $85,000. Illustrate your results graphically.

Reference no: EM13746980

Questions Cloud

Costing method for the material component of raw materials : On January 31, 2011, we elected to change our costing method for the material component of raw materials, work in process, and finished goods inventory to the lower of cost or market using the first-in first-out (“FIFO”) method, from the lower of cos..
Hypertonic or hypotoni : Hypertonic, or hypotonic? Would water move into or out of the red blood cells (RBC) to maintain equilibrium?
Write a book review of an american soldier in world war i : write a book review of An American Soldier in World War I. In the Book Review, you must identify the authors' thesis and evaluate how effectively theysupport it.
Genes are transferred from the parent organisms : During reproduction, genes are transferred from the parent organisms to the offspring, whether they are tomato seeds or baby walruses. Scientists have learned how to isolate genes and insert them into cells without using the parents. Genes may now be..
What is the selling price that maximizes revenue : Suppose that the price at which q thousand flash drives can be sold is given by the demand equation. Find the level of production (to the nearest flash drive) that maximizes revenue. What is the selling price (per flash drive) that maximizes revenue?..
Write a three page essay on triangle fire : Write a three page essay on Triangle Fire using a Brief History with Documents. Develop a main point based on the information and insights you gained from the book.
Partnerships capital balances : Gibbs, Cook, and Chan are partners and share income and loss in a 5:1:4 ratios. The partnership's capital balances are as follows: Gibbs, $606,000; Cook, $148,000; and Chan, $446,000. Gibbs decides to withdraw from the partnership, and the partners a..
Define multivate technique is factor analysis : how it is different from the other 2 techniques, how at least 1 other real-life company has used this technique to address a business problem, and how that technique might be used at your own organization. The Choosen Multivate Technique is Factor..
Record the following transactions for current fiscal year : A corporation was organized on January 30 of the current year, with an authorization of 20,000 shares of $4 preferred stock, $12 par, and 100,000 shares of $3 par common stock. On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bo..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Determine the net present value for the two machines

Determine the net present value for the two machines. Use the table of present values of an annuity of $1 above. Round to the nearest dollar.

  Simple capital structure

Assuming that Susan has a marginal tax rate of 30%, the net effect of her having this hobby will be to increase her total tax liability by:

  Illustrate what is the fair price

The yield to maturity on new issues of similar corporate bonds is 5.2%. Someone offers you $1,225 for your bond. Is this a fair price, to you the seller? Illustrate what is the fair price?

  Differences between product and period costs

What are the differences between product and period costs - why is it important to properly distinguish one type of cost from the other?

  Illustrate what is the direct labor efficiency variance

The standard direct labor wage are is $8.00 and the standard quantity of hours allowed for the actual level of output was 5,000 direct labor hours. Illustrate what is the direct labor efficiency variance?

  What is initial cost of the bread machine

Whole Grain Bakery purchases an industrial bread machine for $25,300. What is initial cost of the bread machine?

  Identify two relevant and two non-relevant costs

Identify a decision that has recently been made or will be made in the near future in your organization.  Identify two relevant and two non-relevant costs in this decision.

  Prepare the companys cash budget for the upcoming fiscal

prepare the companys cash budget for the upcoming fiscal year.garden depot is a retailer that is preparing its budget

  Compute the payback period

Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line.

  Illustrate what amount of interest expense was paid in cash

Classic Corporation borrowed $90,000 from the bank on November 1, 2012. The note had an 8 percent annual rate of interest and matured on April 30, 2013. Interest and principal were paid in cash on the maturity date. Illustrate what amount of inter..

  What depreciation would nanki record for the year

In 2011, due to changes in technology, Nanki revised the useful life to a total of 4 years with no residual value. What depreciation would Nanki record for the year 2011 on this equipment?

  Illustrate what is the factory overhead rate for factory

Illustrate what is the factory overhead rate for Factory 1 (dollar amount per machine hr), Factory 2 (dollar amount per direct labor hr),balances of the factory accounts for each factory as of November 30.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd