The Following Information Is for a Product Manufactured and Sold

question 94

Essay

The following information is for a product manufactured and sold by Richards Corporation:
Sales price per unit,$70
Variable cost per unit,$40
Total fixed costs,$600,000
Last year,Richards earned a profit of $30,000.
Required:
1)How many units did Richards sell last year?
2)Richards' managers are considering decreasing the sales price to $60 in an effort to increase market share.Also,the company wants a profit of $60,000.How many units would it have to sell at the lower selling price to achieve this target?

Evaluate the cost implications of fixed input requirements in the short run production process.

Apply linear and non-linear production function models to real-world production problems.

Analyze the impact of input constraints on the cost-minimization problem of a firm.

Understand the principles behind the production and cost functions in special product markets, including competitive firms using multiple inputs.

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Definitions:

Convict On Parole

An individual who has been released from prison before completing their sentence under certain conditions for good behavior.

Criminal Codes

A compilation of laws and statutes that define acts punishable by the state, including crimes and the penalties for their commission.

Partnership

A business arrangement that is legally recognized, involving two or more partners who jointly manage the business and divide its profits.

Criminal Act

An action in violation of the laws of a jurisdiction constituting a crime, with the intention of harm or with recklessness as to its effects.