6. A company manufacturing wicker baskets knows that it has variable costs of $0.62 per unit and fixed costs of $150 per week. Its baskets sell for $2.40 each. Assuming that total costs are a linear function of output, calculate the level of weekly sales necessary to:
(i) Break-even
(ii) Reach a profit of $4300 per week
Let "x=" the number of wicker baskets produced per week. Then the total cost will be
"TR(x)=2.40x"
The profit will be
"P(x)=1.78x-150"
(i)
"x=84"
The level of weekly sales is "84" wicker baskets.
(ii)
"x=2500"
The level of weekly sales is "2500" wicker baskets.
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