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A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $800,000 per month. The variable cost per thousand board feet is $155.50 the price charged will be determined by p=$600-0.05D per 1,000 board feet. (2.2)
A) For this situation, determine the optimal monthly sales volume for this product and calculate the profit or loss at the optimal volume.
B) What is the domain of profitable demand during a month?
Compute the equilibrium quantity and price and Calculate the consumer and producer surplus.
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q.consider total cost and total revenue given in the table belowquantity 0 1 2 3 4 5 6 7total cost 8 9 10 11 13 19 27
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