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A) $

Revenue(304.33(w1)*239,175(w1)) 72,788,127.75

Variable costs(208.66 (w1)*239,175(w1) -49,906,255.50

Fixed cost(2*250,000) -500,000

Profit 22,381,872.25

Workings

w1) p=a-bq

B(2/5000) 0.0004

A(0.0004*1,000,000) 400

MR=A-2bq)

MR=variable costs

variable costs :

material z(500*0.10) 50
Materialy(300*0.50) 150
Machine costs(20/60*6) 2
labour costs(0.37 (w2)*18) 6.66

Total variable cost/batch' 208.66

Q(400-208.66)/(0.0004*2) 239,175

P(400-(0.0004*239,175) 304.33

w2) cost for 1000 batch(1000^-0.321928*5*1000) 540.98


cost for 999 batch(999^-0.321928*5*999) 540.61

Hour for 1000th batch 0.37

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