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Page 3 Question 2 [Total 10 marks] A large steel solid sheet products company in USA is negotiating a contract to sell i
Posted: Wed Mar 09, 2022 8:26 am
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- Page 3 Question 2 Total 10 Marks A Large Steel Solid Sheet Products Company In Usa Is Negotiating A Contract To Sell I 1 (123.86 KiB) Viewed 35 times
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Question 2 [Total 10 marks] A large steel solid sheet products
company in USA is negotiating a contract to sell its 24"x48" steel sheets overseas. The total fixed cost for the production of 24"x48" steel sheets is US$ (1,000,000 + D8x10,000) per month. The variable cost per one thousand 24°x48" steel sheets is US$ (20,000+ D8x100). The maximum output is 1.600.000 24"x48" steel sheets per month. The price-and-demand relationship is: P- US$ (30,000 - 5xD) where P= the price charged per one thousand 24"x48" steel sheets D is the quantity demanded (1 unit is one thousand 24"x48" steel sheets) (a) Determine the optimal monthly sales volume (in units) for maximum profit. Round off your final answer to the nearest integer. (b) Calculate the maximum profit. Round off your final answer to the nearest hundred. (c) What is the range of profitable demand (in units) during a month? Answer (a)