A Manufacturer of Tennis Rackets Finds That the Total Cost

question 134

Short Answer

A manufacturer of tennis rackets finds that the total cost C(x) (in dollars) of manufacturing x rackets/day is given by Each racket can be sold at a price of p dollars, where p is related to x by the demand equation If all rackets that are manufactured can be sold, find the daily level of production that will yield a maximum profit for the manufacturer.
__________ rackets/day

---

Definitions:

FIFO Method

An inventory valuation method where the first goods purchased are the first to be sold, standing for "First In, First Out".

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units, facilitating the calculation of unit costs.

Equivalent Units

A concept in cost accounting used to apportion costs to partially completed goods, based on the amount of work that has been put into those goods.

Conversion Costs

Conversion costs are the combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.