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A local company has determined that when the price per unit it sells is $1,716, it will sell 220 units per month. If it
Posted: Thu Jul 14, 2022 4:07 pm
by answerhappygod
- A Local Company Has Determined That When The Price Per Unit It Sells Is 1 716 It Will Sell 220 Units Per Month If It 1 (42.32 KiB) Viewed 17 times
A local company has determined that when the price per unit it sells is $1,716, it will sell 220 units per month. If it lowers the price to $996, it will sell 400 units per month. a) Assuming a linear demand curve, find the store's monthly revenue equation. (Hint: Start with finding the linear demand equation) b) If the store has a fixed cost of $462 per month and the variable cost for each unit is $0.11, find the store's monthly cost equation. c). Find the store's monthly profit equation. How many should the company sell in order to maximize profits? What price should they charge per unit? What is the maximum monthly profit the store can earn?