Marginal cost equals marginal revenue

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Reference no: EM135903

Q1. Sanborn, a manufacturer of electric roof vents, realizes a cost of $55.00 for every unit it produces. Its total fixed costs equal 2 million. If the company manufactures 500,000 units, compute the following:

a. unit costs

b. markup price if the company desires a 10 percent return on sales

c. ROI price if the company desires a 25 percent return on an investment of $1 million

Q2. Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $10, AVC = $5, and the price per unit is $7.50. In this situation.

Reference no: EM135903

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