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Find the new maximum profit

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Reference no: EM133015679

Question - A factory sells a particular product at a price (20-.01x) pesos per unit. The variable cost per unit is P 9. Fixed cost of the factory is P1.000.

a. Write the TR, TC and profit functions of the factory.

b. Find the units to sell to break-even.

c. Find the break-even revenues.

d. Interpret the meaning of the two break-even points.

e. Find the units to sell for a maximum profit.

f. Find the maximum profit.

g. Find the profit at a sale of 500 units.

h. Will there be a profit if there are remaining 90 units? What remedy can you recommend?

i. Suppose that the selling price per unit becomes (30-0.01x) pesos, find the new maximum profit (assuming that VC and FC are constant).

Reference no: EM133015679

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