Reference no: EM133168344

Questions -

Q1. At a price of $4.92 per pound, the supply for cherries is 16,315 pounds, and the demand is 10,216 pounds. When the price drops to $4.17 per pound, the supply decreases to 10,589 pounds and the demand increases to 12,892 pounds. Assume that the price-supply and price-demand equations are linear. What is the equilibrium price?

Q2. At a price of $4.78 per pound, the supply for cherries is 16,219 pounds, and the demand is 10,110 pounds. When the price drops to $4.11 per pound, the supply decreases to 10,893 pounds and the demand increases to 12,941 pounds. Assume that the price-supply and price-demand equations are linear. What is the equilibrium quantity?

Q3. Any manufacturing company has costs which include fixed costs such as plant overhead, product design, setup, and promotion; and variable costs that depend on the number of items produced. The revenue is the amount of money received from the sale of its product. The company breaks even if the revenue is equal to the cost.

Q4. A small plant manufacturing riding mowers. The plant has fixed costs (leases, insurance, etc.) of $53,659 per day and variable costs (labor, materials, etc.) of $1,392 per mower produced. The mowers are sold for $2,151 each. The resulting cost and revenue equations are

y= 53,659 + 1,392 x Cost equation

y= 2,151 x Revenue equation

where x is the total number of mowers produced and sold each day. The daily costs and revenue are in dollars.

How many mowers must be manufactured and sold each day for the company to break even?

Q5. A company manufactures dog leashes that sell for $17.12, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $24,621 and the variable costs (materials, shipping, etc.) are $7.91 per leash. How many leashes must be produced and sold each month for the company to break even?