2.12 A company produces circuit boards used to update outdated computer equipment. The fixed cost is $42,000 per month, and the variable cost is $53 per circuit board. The selling price per unit is of the plant is 4,000 units per p = $150 − 0.02D. Maximum output Month. Optimum demand for this product Maximum profit per month [$150 [$42,000 $53 = $75,612.50 0.02 + (2,425) (2,425) ^2] (2,425)] − − Breakeven occurring Volume + = 0 (a − − −bD2 CV) D CF + $53) $42,000 = 0 ($150 −0.02D^2 − − D + 97D 42,000 = 0 −0.02D^2 − of profitable demand Company’s range 2.13 A local defense contractor is considering the production of fireworks as a way to reduce dependence on the military. The variable cost per unit is $40. The fixed cost that can be
2.12 A company produces circuit boards used to update outdated computer equipment. The fixed cost is $42,000 per month, and the variable cost is $53 per circuit board. The selling price per unit is p = $150 − 0.02D. Maximum output of the plant is 4,000 units per Month. Optimum demand for this product Maximum profit per month [$150 (2,425) − 0.02 (2,425) ^2] − [$42,000 + $53 (2,425)] = $75,612.50 Breakeven occurring Volume −bD2 + (a − CV) D − CF = 0 −0.02D^2 + ($150 − $53) D − $42,000 = 0 −0.02D^2 + 97D − 42,000 = 0 Company’s range of profitable demand 2.13 A local defense contractor is considering the production of fireworks as a way to reduce dependence on the military. The variable cost per unit is $40. The fixed cost that can be
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