Determine the values of q that minimizes unit sales

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Fixed Cost(FC)= 2000000, variable cost(VC)= 12+0.005Q, total cost(TC)= FC + VC x Q , unit sales price p=250

(a) determine the values of Q that minimizes unit sales cost UC = TC/Q; and compute the annual profit earned by the plant at this quantity.

(b)Determine the values of Q that maximizes the annual profit.

 

Reference no: EM13212680

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