Mathematics, 20.03.2021 14:00, elijahcarson9015
A). A small business woman has realized that for one of her products, if the price per unit is GH¢20 she can sell 300 units a day. On the other hand, if the price per unit is reduced to GH¢13, she can sell 440 units a day. From the accounting records, her accountant has estimated the fixed cost of production as GH₵2,000 with a variable cost per unit of GH¢10.
(i). Find an expression relating price and output assuming it is linear.
(ii). State the total cost function, assuming it is linear.
(iii) Advise the business woman on the level of production at which she will breakeven.
AN(10 marks)
AP(5 marks)
Answers: 1
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A). A small business woman has realized that for one of her products, if the price per unit is GH¢20...
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