Answered: Suppose the cost and the demand for a…

Suppose the cost and the demand for a daily product is: C=10 d(p) = D(1 - w(p)) = 200-10p What is the total contribution (profit) based on the optimal price?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Ay 3. Suppose the cost and the demand for a daily product is: C=10 d(p) = D(1 - w(p)) = 200-10p What is the total contribution (profit) based on the optimal price?

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Similar questions

Given below in two contributions which option is good and why? Profit=unit sold × unit contribution margin 1.unit sold in excess BEP 2.unit sold in lower of BEP
22) Which of the following expressions can be used to calculate break-even sales revenue with the contribution-margin ratio (CMR)? A) CMR x fixed costs B) (Sales revenue -variable costs) +CMR. O Fixed costs - CMR. D) CMR - fixed costs. E) (Fixed costs + variable costs) x CMR.
22. Which of the following statements is true if total fixed costs decrease while the sales price per unit and variable cost per unit remain constant? The contribution margin increases. The breakeven point increases. The contribution margin decreases. The breakeven point decreases.
26. I. The higher the production within relevant range, the higher is fixed cost per unit.II. The higher is the production within relevant range, the higher is the variable cost per unit.III. The lower the production, the lower the total fixed cost. a• True, False, False b• True, True, True c• False, False, True d• False, False, False e• False, True, False
Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2, respectively, and that the consumer's income is $18. Units of X 1 2 3 4 5 Marginal Utility, X Multiple Choice 20 16 12 8 6 4 4 of X and 5 of Y What quantities of X and Y should be purchased to maximize utility? O 2 of X and 1 of Y O 2 of X and 6 of Y Units of Y 1 2 3 4 5 6 O2 2 of X and 5 of Y Marginal Utility, Y 16 14 12 10 8 6
Why is variable cost $174?
5..
4. What if the average price per unit increased to $25.50? Recalculate the following: a Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. C. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.
Given the following notations, what is the breakeven sales level in units? SP =selling price per unit FC = total fixed cost VC = variable cost per unit A. SP / (FC/VC)B. FC/(VC/SP)C. VC/(SP – FC)D. FC/(SP – VC)
Given that the total cost, C, is related to sales volume, x, by the equation y=1000+0.2x, say true or false for the following and proof it. (a) The cost-sales line rises $2 for each increase of $10 in sales volume. (b) The slope of the line is interpreted as variable cost
Answer full question
13. The contribution margin ratio decreases when fixed costs increase. O fixed costs decrease. variable costs as a percentage of sales decrease. O variable costs as a percentage of sales increase.

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