MAT10706 Quantitative Methods With Economics
Added on 2020-02-24
9 Pages1167 Words97 Views
Part 1Information given belowPineMyrtleSassafrasCost of Timber Parts$15.50$17.50$24.50Cost of Wheels $3.00$3.00$3.00Sale Price Range$20-25$26-30$32-40Let the number of units produced are ‘x’The total cost of producing ‘x’ goods = Number of Units Sold + Total Cost of Timber parts for x units + Total Cost of Wheels for x unitsTotal Revenue = Number of Units Sold (x) X Price (p)Total Revenue = Total Cost + Total ProfitsTotal Profits = Profit per Unit X Number of Units Sold (n)1.1)For Pine Timber ToysSale PriceVariable Costs of Making in $) Profits Per Unit2018.51.52118.52.52218.53.52318.54.52418.55.52518.56.5Total Costs = 300 + 15.50 x + 3xTotal Cost = 300 +18.5 x - Cost FunctionLet us assume the sale price of $20. Therefore, total revenues are 21x. The revenue function, therefore, is 20x = 300 +18.5 x + 1.5 x-> Revenue Function
123456051015202530Costs and Profit Per Unit of Pine Timber ToysSale PricePrice Per UnitAxis Title1.b)Similarly for Insects made out of Myrtle TimberSale PriceVariable Costs of Making in $) Profits Per Unit2620.55.52720.56.52820.57.52920.58.53020.59.51234505101520253035Costs and Profit Per Unit of Myrtle Timber ToysSale PricePrice Per UnitTotal Cost = 300 +20.5 y - Cost FunctionLet us assume sale price of 27.Total Revenues ($)= 27yTotal Revenue ($)= 300 + 20.5 y + 6.5y - Revenue Function
= 300 +26.5x1.c) Similarly, for insects made out of SassafrasSale PriceVariable Costs of Making in $) Profits Per Unit3227.54.53327.55.53427.56.53527.57.53627.58.53727.59.53827.510.53927.511.54027.512.5123456789051015202530354045Costs and Profit Per Unit of Sassafras Timber ToysSale PricePrice Per UnitTotal Cost Function = 300 +27.5 y - Cost FunctionLet us assume sale price of 33.Total Revenues ($)= 33zTotal Revenues ($)= 300 + 27.5 z + 5.5z Revenue Function= 300 +26.5z
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