SOM 307 - Data Analysis and Modeling » Fall 2021 » EconfinOMB1

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Question #1
Given the following information regarding a production and distribution system. The total fixed costs are equal to 22300 dollars. The variable cost per unit of product is equal to 460 dollars. The linear demand curve intercept the price axis at 1820 dollars. The slope of the linear demand curve is -13. At around what quantity of sales is the revenue maximized?
A.   160 units.
B.   75 units.
C.   161 units.
D.   80 units.
E.   70 units.
Question #2
Given the following information regarding a production and distribution system. The total fixed costs are equal to 22300 dollars. The variable cost per unit of product is equal to 460 dollars. The linear demand curve intercept the price axis at 1820 dollars. The slope of the linear demand curve is -13. At around what quantity of sales do you have the first break-even point (from loss to profit)?
A.   22 units.
B.   17 units.
C.   11 units.
D.   13 units.
E.   20 units.
Question #3
Given the following information regarding a production and distribution system. The total fixed costs are equal to 22300 dollars. The variable cost per unit of product is equal to 460 dollars. The linear demand curve intercept the price axis at 1820 dollars. The slope of the linear demand curve is -13. At around what quantity of sales do you have the second break-even point (from profit to loss)?
A.   76 units.
B.   85 units.
C.   97 units.
D.   83 units.
E.   84 units.
Question #4
Given the following information regarding a production and distribution system. The total fixed costs are equal to 22300 dollars. The variable cost per unit of product is equal to 460 dollars. The linear demand curve intercept the price axis at 1820 dollars. The slope of the linear demand curve is -13. At around what volume of sales is the total profit maximized?
A.   80 units.
B.   62 units.
C.   52 units.
D.   46 units.
E.   47 units.

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