A company has determine the price and the monthly demand of its products are related by the equation D = (400āš) where p is the price per unit in peso and D is the monthly demand. The associated fixed costs are PhP 1,125 per month and the variable costs are PhP 100/ unit. Use this information to answer the following: a)What is the optimal number of units that should be produced and sold each month? b) Determine the value of D that represents the break-even point?
Added by Kambal K.
Step 1
The cost for the company is given by the sum of the fixed costs and the variable costs, which is C = 1125 + 100D = 1125 + 100(400 - p). The profit for the company is given by the difference between the revenue and the cost, which is P = R - C = p(400 - p) - (1125 Show moreā¦
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