Business, 05.03.2021 22:00, carafaith02

Imagine you are the owner and the CEO of a small company manufacturing specialty kayaks. You have designed a new kayak and are trying to analyze the costs, the revenues, the profits associated with the productions and sales of this new product. You have determined that you will have to spend $150,000 on the new production line set-up and the advertising, and that after that it will cost you $400 to produce each kayak. You also conducted market research which showed that the demand equation for the new kayak is (p+10q=3000) where q is the number of the kayaks that will be purchased at the price p dollars per kayak. You decided that you will always price the kayaks at the highest price at which all manufactured kayaks will be sold. Now, do the following analysis. Required:
a. Express the company’s costs C that will be incurred in the production of the new kayak, the revenue R and the profit P from the sales of the kayak as functions of the quantity q of these kayaks that are manufactured and sold.
b. Determine what levels of production will result in the company breaking even.
c. Determine what levels of production will lead to the company making as large profit as possible, what is the maximum possible profit that the company can make by manufacturing and selling the new kayak.
d. Determine what level of production will result in the company’s revenue being as large as possible.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:00, villarrealc1987

Identify the management, organization, and technology factors responsible for slow adoption rates of internal corporate social networks. when a company decides to launch a social networking program the management, all need to be on board with the launch. from the ceo down to the shift or assistant manager everyone needs to know its coming and be excited. the organization of such a launch needs to be mapped out, and training provided for the new systems. within the company, they need to make sure the technology at hand (computers, tablets, and company phones), are all compatible with the system. when a company launches a new system, and the find that the employees are not adopting it, they need to investigate the reasons. is the management at all level's onboard? did we organize the launch properly? do we have the right technology for the system? things can goeither way but if

Answers: 2

continue

Business, 21.06.2019 21:00, keke1871

While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. you can't spare the time to pick up the pizza and must have it delivered. "pick-up-sticks" offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). "fred's" offers the round, deep-dish sasquatch, which is 20 inches in diameter. it is 1-3/4 inches thick, includes two toppings, and costs $17.25 plus 5% sales tax and free delivery. 1. what is the problem in this situation? state it in an explicit and precise manner. 2. systematically apply the seven principles of engineering economy (pp. 3-6) to the problem you have defined in part (a). 3. assuming that your common unit of measure is dollars (i. e., cost), what is the better value for getting a pizza based on the criterion of minimizing cost per unit of volume? 4. what other criteria might be used to select which pizza to purchase?

Answers: 3

continue

Business, 21.06.2019 23:00, Tywan566

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 assetâ€™s useful life (years) 3 4 4 6 lessorâ€™s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes

Answers: 1

continue

Business, 22.06.2019 05:00, tipbri6380

The new york stock exchange is an example of what type of stock market?

Answers: 1

continue

Do you know the correct answer?

Imagine you are the owner and the CEO of a small company manufacturing specialty kayaks. You have de...