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A company sells its two products A and B. The prices of products A and B are $5 and $8 per unit respectively. The material costs for A and B are $0.5 and $1.5 per unit respectively. The labour charges of $0.5 per unit is same for both of the products A and B. The fixed cost of the business is estimated as $3000.
Formulate the total revenue function if and units are sold of product A and B respectively.
Formulate the total cost function if and units are produced of product A and B respectively.
Formulate the total profit function if and units are produced and sold of product A and B respectively.
It is sometimes stated that "the net present value approach assumes reinvestment of the intermediate cash flows at the required return
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