Impact of Changing Price on Revenue and Profit in Motor Cycle Manufacturing Company

Maths assignment
Name of the student
Name of the university
Author note

Table of Contents
Answer to question 1: Impact of changing price upon revenue and profit................................3
Part 1......................................................................................................................................3
Part 2......................................................................................................................................4
Part 3......................................................................................................................................5
Part 4:.....................................................................................................................................5
Answer to question 2: Impact of price discount on revenue......................................................6
Bibliography...............................................................................................................................8

Answer to question 1: Impact of changing price upon revenue and profit
Part 1
Following the information given for the motor cycle manufacturing company
Type 1: Chrome
catalyst
Type 2: Platinum
Power Type 3: Silver Streak
Cost of engine parts $876.00 $1,228.00 $1,024.00
Cost of wheels(each) $65.00 $65.00 $65.00
Sale price range $1,100.00 $1,500.00 $1,300.00
Fixed Production
cost $4,000.00 $4,000.00 $4,000.00
Total Variable cost $1,006.00 $1,358.00 $1,154.00
Let us considered Q is number of motor cycles produced for each category.
Hence, the total cost functions can be defined as
Type 1: Chrome catalyst Type 2: Platinum
Power
Type 3: Silver
Streak
Total cost
function
TC = 4000 + Q*1006 TC = 4000 + Q*1358 TC = 4000 +
Q*1154
Similarly, the total revenue functions can be defined as
Type 1: Chrome
catalyst
Type 2: Platinum
Power
Type 3: Silver
Streak
Total Revenue
function
TR = Q*1100 TR = Q*1500 TR = Q*1300
400 450 500 550 600 650 700 750 800 850 900
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
$1,000,000.00
Type 1: Chrome catalyst
TC TR