Levels of total expenditures or total costs

Reference no: EM13789271

The dairy farm company, a small producer of milk and cheese, has estimated the quantities of milk and cheese that it can produce with three levels of total expenditures or total costs.

These are indicated in the following table. If the price of milk (product A) and the price of cheese (product B) that the firm receives are $1 each per unit of the products, draw a figure showing the maximum total profit ( ) that the firm can earn at each level of TC and the overall maximum profit that the firm can earn for the three different levels of TC.

TC=$70		TC=$90

Product A	Product B	Product A	Product B
80	0	100	0
70	40	90	60
50	70	70	90
20	90	30	120
0	95	0	130

TC=$140
Product A	Product B
130	0
110	70
80	120
40	150
0	160

Reference no: EM13789271

Questions Cloud

What lessons can be learned for low-income countries : What lessons can be learned for low-income countries from botswana's economic successes?

Provide a descriptive study of human societies : Provide a descriptive study of human societies. In this instance, your ethnography will help you see your idea in a real-world setting.

What is the divisions turnover and divisions margin : Eckels Wares is a division of a major corporation. The following data are for the latest year of operations: What is the division's margin? What is the division's turnover? What is the division's return on investment (ROI)?

Resulting configuration of share ownership : What percent of ownership must be sold to grant the 100 percent three-year return? What is the resulting configuration of share ownership?

Levels of total expenditures or total costs : The dairy farm company, a small producer of milk and cheese, has estimated the quantities of milk and cheese that it can produce with three levels of total expenditures or total costs.

What is the divisions return on investment : Heavey Fabrication is a division of a major corporation. Last year the division had total sales of $21,120,000, net operating income of $2,006,400, and average operating assets of $6,000,000. The company's minimum required rate of return is 12%. What..

Key component for knowledge management : Business intelligence is a key component for knowledge management. Decision support systems (DSSes) are the foundation of business intelligence and add a modeling selection to user interface.

Schedule of expected cash collections : Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January. Prepare a Schedul..

Compute the value of risk ratios : Compute the value of each of the following risk ratios.

User Account

All Pages