# Question 3.. LykkeTil AS produces only one type of product and

Added on 2019-09-26

3 Pages827 Words152 Views

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##### Cost Analysis of LykkeTil AS

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Added on 2019-09-26

3 Pages827 Words152 Views

Question 3.LykkeTil AS produces only one type of product and believes that the relationship between price and volume in the domestic market for this product is:P = 3 600 to 1.2 X (where P is the unit price and X - number of requested devices period).An analysis of costs gave the following relationship between total costs and amount in the relevant interval:TK(total costs) = 600 X + 900 000 (where X is the number of units).Maximum production capacity is 2,500 units in the period.a) gain optimum quantity and price. Calculate the maximum achievable margin and maximumachievable result.b) the quantity and price are demand neutral elastic? Also calculate the maximum turnover (TI).c) As an alternative to selling at above market can now sell everything it produces abroad (export) at a fixed price £ 1500, - per unit. What will gain optimal amount by selling in this market, and what is the maximum achievable result? Question 4.Mikkel and Maria have 01.11.20X6( november 1`st 2016) started ”M & M`s Lemonades AS” with the following assets (in NOK 1000)AssetsValueVan150 Raw material storage50 Property970 1000 shares of XYZ AS (course(rate) 50/share) 50 PC, Printer, Telephones30 Bank deposits95 Cash5 Machine for production of lemonade500 Total assets1

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