You Have Been Provided with the Following Information Regarding the Ralston

question 68

Essay

You have been provided with the following information regarding the Ralston Manufacturing Company:
$\begin{array}{c}\begin{array}{|l|}\hline \text {Sales price}\\\hline \text {Variable manufacturing cost }\\\text {per unit}\\\hline \text {Fixed manutacturing costs }\\\text {per unit}\\\hline \text {Variable marketing cost per}\\\text { unit}\\\hline \text {Fixed administrative costs }\\\text {per unit}\\\hline\end{array}\begin{array}{r|}\hline \$50\\\hline \\24\\\hline \\12\\\hline \\6\\\hline \\3\\\hline \end{array}\end{array}$
This information is based on forecasted sales of 30,000 units.
Required:
(a)What is the expected operating profit for the upcoming year?
(b)What is the break-even point in units?
(c)If $160,000 of operating profit is desired,how many units must be sold?

Evaluate the impact of price changes on the consumption decisions of individuals with specific utility functions.

Identify perfect substitutes and complements from given utility functions.

Calculate the optimal consumption bundle given budget constraints and prices.

Interpret consumer behavior through marginal rate of substitution and indifference curve analysis.

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Definitions:

Consumer Credit-Card Rate

The interest rate that banks charge consumers on the balances they carry on their credit cards.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Economic Resource

Any resource used by humans to produce goods or services, including labor, capital, land, and entrepreneurship.