Question

1. A company produces a special new type of TV. The company has fixed costs of ​$485,000​, and it costs ​$1000 to produce each TV. The company projects that if it charges a price of ​$2400 for the​ TV, it will be able to sell 750 TVs. If the company wants to sell 800 ​TVs, however, it must lower the price to ​$2100. Assume a linear demand. What price should the company charge to earn a profit of ​$945,000​? It would need to charge ​$______?

2. A beverage company produces bottled water. Each bottle costs the company ​$0.03 to​ produce, and the company has fixed costs of ​$1700 each week. If the company sells the bottled water for ​$1.25 per​ bottle, what profit does the company earn by producing and selling 3700 bottles of water in a​ week? What is the profit earned by selling 3700 ​bottles? The profit​ (or lose) is ​$______?

3. A company produces a special new type of TV. The company has fixed costs of $451,000​, and it costs ​$1300 to produce each TV. The company projects that if it charges a price of ​$2500 for the​ TV, it will be able to sell 750 TVs. If the company wants to sell 800 ​TVs, however, it must lower the price to ​$2200. Assume a linear demand. If the company sets the price of the TV to be ​$3700​, how many can it expect to​ sell? It can expect to sell _____ TVs

Answer 1

ol page: 0 Insweg what perce should the company change to caro a poolit $ ¢ 945000 ply ratio = contribution / sales $11001 $2100 = 52.38%. working : contribution $ 2100 - $1000 $1100 - sales 2100 Sales for desired profit - fixed cost + desired profit/ ply ratio 485000+ $945000 / 52.38. $ 1430000 52.38.1. $ 2730049.63 desired company will charge 1$ 2730049.63] to earn a profit of $ 945000