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What is the optimal number of units that should be produced

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A company has determined that the price range and the monthly demand of one its products are related by the equation d = 475 in square root - p

where P is the price per unit in dollars and D is the monthly demand. The associated fixed costs are $1,400/month, and the variable costs are $175/unit.

Problem 1: What is the optimal number of units that should be produced and sold each month?

A. 17

B. 23

C. 24

D. 12

 

Reference no: EM132768885

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