The Total Weekly Revenue (In Dollars) of the Country Workshop

question 27

Multiple Choice

The total weekly revenue (in dollars) of the Country Workshop realized in manufacturing and selling its rolltop desks is given by where x denotes the number of finished units and y denotes the number of unfinished units manufactured and sold each week. The total weekly cost attributable to the manufacture of these desks is given by dollars. Determine how many finished units and how many unfinished units the company should manufacture each week in order to maximize its profit. What is the maximum profit(P) realizable?

• A) x = 330; y = 0; P = 13,425
• B) x = 200; y = 130; P = 13,425
• C) x = 200; y = 130; P = 13,670
• D) x = 130; y = 200; P = 13,670

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Definitions:

Break-Even Point

The level of sales or production at which a business's revenues equal its expenses, resulting in neither profit nor loss.

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes to covering fixed costs and generating profit.

Break Even

The point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor incurring a loss.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.