Business, 02.04.2021 22:50 Guidomigoo3x

Below, you are given the total revenue and total cost associated with producing and selling different quantities of a good. You will use this information to identify the marginal revenue and marginal cost associated with producing different quantities of the good and the profit associated with each quantity. Lastly, you will identify a rule for maximizing profit. Scott's Sundaes is an ice cream shop, famous for its root beer floats. Scott's Sundaes is the only ice cream shop in town. The table below provides the total revenue and total cost associated with selling different quantities of root beer floats.
Price of Quants Total Marginal Total Marginal Profit
floats of floats revenue revenue cost Cost
$7.50 0 $5
$7.00 1 $6
$6.50 2 $8
$6.00 3 $11
$5.50 4 $15
$5.00 5 $20
$4.50 6 $26
$4.00 7

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:20

Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?

Answers: 1

Answer

Business, 22.06.2019 06:30

73. calculate the weighted average cost of capital (wacc) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%. (a) 15.6% (b) 16.0% (c) 15.0% (d) 16.6% (e) none of the above

Answers: 2

Answer

Business, 22.06.2019 11:20

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Answers: 1

Answer

Business, 22.06.2019 12:20

In terms of precent, beer has more alcohol than whiskey true or false

Answers: 1

Answer

You know the right answer?

Below, you are given the total revenue and total cost associated with producing and selling differen...

Questions

Business, 28.05.2020 18:57

Ñ What is one advantage and one disadvantage of the global economy for American workers? Mark this and return Save and Exit Ne...