Preview

Rock "N" Rap

Good Essays
Open Document
Open Document
597 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Rock "N" Rap
Homework 12 Rock ‘n’ Rap Gabriel Gonzalez Block: 4 It costs the company an average of $15,000 to produce a rock CD and an average of $12,000 to produce a rap CD. Also, it takes about 18 hours to produce a rock CD and about 25 hours to produce a rap CD. The company can afford to spend up to $150,000 on production next month. Also, the company will spend at least 175 hours on production. The company earns $20,000 in profit on each rock CD it produces and $30,000 in profit on each rap CD it produces. But the company recently promised its distributor that it would not release more rap music than rock. The company needs to decide how many of each type of CD to make. Note: It can make a fraction of a CD next month and finish it the next month after. Graph the feasible region. X- # of Rock CD’s; Y- # of Rap CD’s *Available Money: X15+Y12*175 18(0)+25y=175….25y=175…175/25=7=y, x=0 18x+25(0)=175….18x=175…175/18=9.7=x, y=0 *X>*Y…(More Rock CD’s must be made than Rap CD’s) X=0, y0 a. Find at least three combinations of rock and rap CDs that would give the company a profit of $120,000, and mark these points in one color on your graph. (The combinations do not have to be in the feasible region.) Profit=x20,000+y30,000 x=6, y=0 x=0, y=4 x=3, y=2 b. In a different color, mark points on your graph that will earn $240,000 in profits. x=12, y=0 x=0, y=8 x=9, y=2 x=3, y=6 x=6, y=4 Find out how many CDs the company should make of each type next month to maximize its profit. It should make 5 and five ninths of each CD to maximize profit. I know this because this is the highest point in the feasible region. Explain how you found an answer to Question 3 and why you think your answer gives the maximum profit. I know this because this is the highest point in the feasible region. I it’s hard to tell exactly just by graphing so the problem must be solved algebraically. I

You May Also Find These Documents Helpful

  • Satisfactory Essays

    WGU EGT1 Task 1

    • 746 Words
    • 3 Pages

    As you can see in the highlighted section above at 8 units produced Company A achieves profit maximization because at any point after that additional units produced causes a decline in profit. The second approach to profit maximization through total revenue and total cost is graphically. A graph is provided below to illustrate.…

    • 746 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    (b) Find the quantity that maximizes revenue. Verify it is a maximum. What is the…

    • 1051 Words
    • 5 Pages
    Satisfactory Essays
  • Better Essays

    Econ Homework Key

    • 1212 Words
    • 5 Pages

    Draw a graph (the uc / MPK graph) depicting the state of affairs and label this initial profit maximizing point as point A.…

    • 1212 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Marketing Math

    • 823 Words
    • 5 Pages

    Antons Trifonovs HW 1,3,4,5,7 9/29/2014 1. Variable Costs CD package and disc (direct material and labor per CD)---- $1.25/CD songwriters royalties $0.35/CD recording artist royalties $1.00/CD Total Variable Costs per Units = $2.60 Fixed Costs advertising and promotion $275,000 studio recording overhead $250,000 Total Fixed Costs = $525,000 a)contribution per CD unit $9 - $2.60 = $6.40 b)break-even volume in CD units and dollars 525,000 / 6.40 = 82,031.25 units 82,031.25 x $9 sales price = $738,281.25 Dollars c)net profit if 1 million CD's are sold (1,000,000 - 82,031.25) x 6.40 = $5,875,000 d)CD unit volume necessary to achieve a $200,000 profit (525,000 + 200,000) / 6.40 = 113,281.25 units 3. Rash-Away: Contribution Margin = $2.00 - $1.40 = 30% $2.00 Absolute Increase in Unit Sales = $150,000 = 250,000 units $.60 Absolute Increase in Dollar Sales = $150,000 = $500,000 .30…

    • 823 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    In this lesson we was given this problem to work out, “A chain store manager has been told by the main office that daily profit, P, is related to the number of clerks working that day, x, according to the function P=-25x2+300x. What number of clerks will maximize the profit, and what is the maximum possible profit?” In order to solving this problem it requires all the following steps listed below (Dugopolski, M. 2012).…

    • 550 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    1415983562

    • 647 Words
    • 2 Pages

    1-14 : Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each. (a) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be? (b) How many shirts must Gina sell to break even? What is the total revenue for this? 1-15 : Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even? 1-16 : Ray Bond, from Problem 1-15, is trying to find a new supplier that will reduce his variable cost of production to $15 per unit. If he was able to succeed in reducing this cost, what would the break-even point be? 1-17 : Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs. IF Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even? 1-18 : Katherine D’Ann, from Problem 1-17, has become concerned that sales may fall, as the team is on a terrible losing streak, and attendance has fallen off. In fact, Katherine believes that she will sell only 500 programs for the next game. If it was possible to raise the selling price of the program and still sell 500, what would the price have to be for Katherine to break even by selling 500? 1-19 : Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production…

    • 647 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Rap and Women

    • 292 Words
    • 2 Pages

    Rap music over time really has started to downgrade females. In the rap world, women are just accessories to the male rappers. Many females don’t pay attention to the lyrics, but to the beat of the song. If they were to listen to the lyrics, they would realize how degrading it is. Women should be respected more instead of called out of their name.…

    • 292 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Assignment 2 Answers

    • 429 Words
    • 2 Pages

    b. If you round the values in the changing cells to the nearest integer, is the resulting solution still feasible?…

    • 429 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Demand Estimation

    • 5612 Words
    • 23 Pages

    d) Draw a figure showing equilibrium price and quantity as in part (a) and part (c).…

    • 5612 Words
    • 23 Pages
    Powerful Essays
  • Satisfactory Essays

    10 things about yourself

    • 417 Words
    • 2 Pages

    b)Suppose we have two goods. Price of good 1 is $10 and the price of good 2 is $15. The income is $30. Construct a diagram, with the quantities on the X-and Y-axis, and draw a budget line in the diagram.…

    • 417 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Examples of LPP

    • 709 Words
    • 4 Pages

    The standard weight of a special purpose brick is equal to 5kg and it contains two basic ingredients B1 and B2. B1 costs Nu. 5 per kg and B2 costs Nu.8 per kg. Strength considerations dictate that the brick should contain not more than 4kg of B1 and minimum of 2kg of B2. Since the demand for the product is likely to be related to the price of the brick, find out graphically the minimum cost of the brick satisfying the above condition.…

    • 709 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The price P per unit at which a company can sell all that it produces is given by the function P(x) = 300 — 4x. The cost function is c(x) = 500 + 28x where x is the number of units produced. Find x so that the profit is maximum.…

    • 338 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Profit Maximization

    • 2684 Words
    • 11 Pages

    Introduction Overview Short-Run Profit Maximization Problem Definitions Short-Run Profit Maximization Problem Solution to Short-Run Profit Maximization Problem Example Interpretation Comparative Statics Long-Run Profit Maximization Problem Solution to Long-Run Profit Maximization Problem Tangency Condition & Technical Rate of Substitution Factor Demand Returns to Scale and Profit Mazimization Problem Summary…

    • 2684 Words
    • 11 Pages
    Satisfactory Essays
  • Good Essays

    The question mentions that the Caleb’s firm is monopoly so we can use the equation Marginal revenue = Marginal cost to calculate the profit-maximizing output level.…

    • 404 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    1. Based off of the calculation done above the company could realize a profit of $115,800 by producing outlined quantities. W0005X is the most profitable product. I would fulfill the customer’s order as promised. The capacity of the winding department is underfunded. This department is making a lot of errors trying to keep up with production capacity. More hours need to be allocated to winding to reduce errors and increase efficiency. The decrease of the 5% rework product would increase profit. The addition of capacity in the winding department would decrease the rework percent.…

    • 889 Words
    • 4 Pages
    Powerful Essays