A company estimates that the relationship between unit price and demand per month for a new product is approximated by p= $100- $0.10D. The company can produce the product by making the fixed costs $ 15,972 per month and the estimated variable cost is $45 per unit. What is the optimal demand?
A company estimates that the relationship between unit price and demand per month for a new product is approximated by p= $100- $0.10D. The company can produce the product by making the fixed costs $ 15,972 per month and the estimated variable cost is $45 per unit. What is the optimal demand?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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