1) A company manufactures electrical metering devices that monitor power quality. The company's fixed cost is $68,000 per month. The variable cost is $80 per metering device. The selling price per device can be modeled by S = 170 – 0.05 Q where S is the selling price and Q is the number of metering devices sold. How many metering devices must the company sell per month in order to realize a maximum profit? Draw cash flow diagram.
1) A company manufactures electrical metering devices that monitor power quality. The company's fixed cost is $68,000 per month. The variable cost is $80 per metering device. The selling price per device can be modeled by S = 170 – 0.05 Q where S is the selling price and Q is the number of metering devices sold. How many metering devices must the company sell per month in order to realize a maximum profit? Draw cash flow diagram.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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