Example23 H.W.: A company planning to manufacture Webcams has to decide on the location of the production facility. Three location are being considered A, B and C. the fixed costs at the three locations are estimated to be $40000, $65000, and $32000 per year respectively. The variable costs are $4, $2.5 and $4.5 per unit, selling price in three location is $110, $180 and $90 respectively. Maximum capacity is 12000 unit/year in A, 19500 unit/year in B and 9600 unit/year in C. Find the following below: 1- Break- Even quantity in three location 2- Profit or loss in location A when quantity is 400 and 300 3- Profit or loss in location B when quantity is 350 and 450 4- Profit or loss in location C when quantity is 425 and 325 5- Maximum revenues in A, B and C 6- Range of profit at Demand in A, B and C Sketch the Break - Even chart each three location

At what output level is variable costs per unit at a minimum? Supporting Materials Steel Costs $ per ton MC ATC $175 AVC $115 $70 4,000 9,000 11,000 16,500 Steel Outp ut (in tons)

A jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge for each bracelet. Number of bracelets 100 200 300 400 500 600 Total cost (thousands) Price per bracelet $215 $7900 $420 $7400 $625 $5900 $820 $5000 $1015 $4200 $1205 $3600 (a) of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $

Can you please answer parts d & e below only as you have answered the first 3 parts previously: Frank pays 50,000/year in fixed costs. If his shop sells Q cups of tea in a year, the other costs add up to be 10000/Q + Q/20000 per cup of tea What is the: a) average fixed cost, b) average total cost c) variable cost and marginal cost (derived from the the variable cost) d) the annula production level such that the average variable cost is minimised e) the difference between the marginal cost and average variable cost at this production level

. A call center in India used by U.S. andU.K. credit card holders has a capacity of1,400,000 calls annually. The fixed cost ofthe center is $775,000 with an averagevariable cost of $2 and revenue of $3.50 percall.(a) Find the percentage of the capacitythat must be placed each year tobreak even.

The diagram illustrates isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Which statement incorrectly describes the diagram? 10,000 9,000 8,000- 7,000- 6,000- 5,000- 4,000 3,000 2,000 1,000 Price, marginal cost (5) C(8,7500) *A (35,6000) (40, 3300) Profit-QP-AC) Marginal cost hoprofit curve $150,000 boprofit curve $70,000 Zenic procure (AC 0 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity of cars, Q Select one Oa if the price is equal to the average cost, MQ Motors' profits decrease until it sells 40 cars, and then start to increase. Ob Given the same quantity of cars, MQ Motors" profits increase as price increases. OC The shape of MQ Motors' cost function affects the shape of their isoprofit curves Od. MQ Motors incurs increasing marginal cost Oe It MQ Motors sells 35 cars at P-$5,000, it makes profits higher than $70,000.

300 250 200 150 100 50 $ TC 30. The minimum Average Variable Cost is (a) $4 (b) $5 (c) $10 (d) $12 TVC TFC 0 Q 0 2 4 6 8 10 12 14 16 18 20 30 25 20 15 10 5 SA $ 0 0 2 4 6 8 10 12 14 16 18 20 MC AC AVC AFC Q

A trailer manufactor has multiple products designed to be towed by a pickup (Ford F-150, Toyota Tacoma, etc). The production of one of their products - the XL7 5x10 trailer - referred to as XL7510 here, has a fixed 9 cost of $62,308 and a variable cost per unit of XL7510 equal to 202 + - dollars, where is the total 10 number of XL7510s produced. Suppose further that the selling price of this product is 1118 The x-values of the break-even points are The maximum revenue is Form the profit function: P(x) = = The maximum profit is The price that will maximize profit is 1 - dollars per unit of XL7510. 10 dollars (round to the nearest cent) dollars (round to the nearest cent)

Q VC AVC TC ATC MC $30 1 $40 $50 3 $80 4 $90 What are the fixed costs? If the firm can sell its product for $80, it will sell (circle one) of $ units for a profit/loss/breakeven

Hi, what is the Average and Marginal Costs per RVU for the below scenario? 1. Calculate the costs 2. Show your calculations Scenario: Assume that during the FY2016 year, Camden Health LLC historical costs were $750,000 when 11,000 RVUS were produced and $950,000 when 14,000 RVUS were produced. The contract specifies that the number of RVUS per service CPT code are five (5). High Total Fixed Costs #RVUS high point Low Total Fixed Costs #RVUS low point #RVUS per CPT Projected #RVUS for the coming month $950,000 14,000 $750,000 11,000 5 10,000