Question

help

INTRODUCTION Cost, revenue and profit functions may take parabolic forms. In many business and economics applications, our most important goal is to maximize revenue, profit or minimize cost. We may be able to find the price or the quantity of goods and services that maximizes profit, revenue and minimizes cost by using quadratic formula and vertex formula. The goal of this project is to enhance the understanding quadratic functions and how to find the maximum/minimum. Question 1: If you have the chance to start a business, what business would you choose? Why? Question 2: Starting and running a business requires time, effort, hard work and in particular money. What kind of costs do you expect to have to pay in order to start and run your business? Please list them and explain why you need them. Question 3: Some costs are fixed, which are called fixed costs, such as equipments and buildings. Some cost are varied, which are called variable costs, such as labor and material. Please explain what costs in the Question 2 are fixed costs, and what are variable costs. In general, the total cost consists of variable costs and fixed costs. Question 4: In order to keep your business running, you need to make revenue. Revenue is the money that comes into the business from customers. Suppose you know the number of products your business sold and the price you sold them at, how can you calculate the revenue? What strategies could you use in order to increase your business' revenue? The revenue of a business may go up and down depending on many factors. For example a business that sells ice cream will likely make more money during hot summer months. Ther profit of your business is the difference of the revenue and the cost. That is, Profit Revenue Cost If the profit is the positive, your business makes money. If the profit is negative, your business unfortunately makes a loss. If the profit is zero, that is the revenue is equal to the cost, it is called the break-even point Suppose that you were the CEO of a giant high technology corporation, Strawbery, Inc, manufacturer of the Strawberry Phone. Question 5: This month, you have estimated the demand for the Strawberry Phone to be: Q 220-4P where Q is the quantity demanded, and P is the price of a Strawberry Phone. The cost of producing a phone is constant at $12, which is called marginal cost. The fixed cost that includes the cost spent on the factory, the equipment, among others is $1525. As a result, you have a linear cost function, C FC (MC Q), Where C is the total cost, FC is the fixed cost, and the MC is the marginal cost, and Q is the quantity as before. Answer the following questions. 1. What is the price that maximizes the corporation's profit? (Hint: ProfitRevenue Cost) 2. At what price does the corporation break even? Question 6: The other day, as you are burying yourself in the sea of data, you find out that at S500, your corporation sells on average 50,000 Strawberry Phones, the corporation's flagship product, monthly. Additionally, for every $50 increase in the price of a phone, the sales decrease by 1,000 phones. Based on this information, you are very interested in finding 1. the price point that will maximize the revenue, and 2. what the maximum revenue is Question 7: From the two questions above, create a strategy to lower your cost and maximize your profit for the business you chose in question 1. Essay: Write an essay that discusses the answers to the questions above include a detailed description of your business ideas and how it is possible to use maximization of quadratic functions to find the maximal profit.

Answer 1

Q)

If you have a chance to start a business what business would you do choose and why?

• If there is an opportunity to open a business, I would like to open a café.
• The cafes are the kind of monopolistic focused markets.
• The primary reason is that in such a market, I would have the chance to be remarkable and to offer items which is not the same as another but then target comparable shoppers.
• The eatery could be explicitly of the Indian food in a territory where the Indian eateries are uncommon and this could fill in as the special component.

Q)

Starting and running a business requires time effort and hard work and in particular money.What kind of costs do you expect to pay in order to start and run a business please list out them?

• In request to begin and maintain the business, the time and endeavors of the proprietors, just as commitment from the different variables of creation, is required which are land, work and capital. Land or a structure for the cafe which could either be brought or be leased.
• Leasing would require a security store and month to month rents while purchasing would require initial installment and EMI's. The expense of inside planning and furniture would likewise be required.
• At that point would be the expense of work. The work required for redesign or in the event that the land is purchased, for structure the cafe.
• At that point there would be laborers who might serve and keeping up the cafe like baristas, cleaning staff, clerk, chief and so forth. Every one of them would be paid pay rates alongside different advantages.
• The following element i.e, capital would likewise be required. Capital would be as the machines utilized like an espresso machine or dishwasher or microwave. All these require the enthusiasm to be paid.
• Another significant expense would be the expense of promoting and the underlying offers.
• the expense of promoting would be required since it would be another opening and the customers would not be knowing the sort and nature of cafes.
• Sign ought to be send with respect to the nature of nourishment.
• It could be as positive audits by the buyers or the blogging and surveys by the gourmet experts
• . All these eventual required for the advancement of the cafe.
• The latter is the benefits, I would procure as a business visionary. Every one of these expenses are required to open and maintain the business.

Q)

Some costs are fixed which costs are fixed costs such as equipments and buildings.some costs are varied which are called variable cost such as labour and material.Explain variable costs in Question 2 also?

• Fixed expenses are the costs which are brought about once and don't rely upon the units of amount delivered.
• Variable expenses are the costs which shift with the quantity of units delivered.
• In the matter of the eatery, the expenses of structure, furniture, forced air systems or warmer would be fixed expenses. These expenses are not changing with the unit of amount delivered, at least in the short run.
• The variable expenses would be the expenses of servers, crude materials used to make sustenance and different sources of info. The expenses would increment in pinnacle hours when the client would be high and lessen in non-top hours. Agreeing the servers and servers would be utilized and the information sources would be required.

Q)In order to continue your business running you need to make revenue.Revenue is the money that comes from your customer so how you sold the items and how you maintain the price and calculate the money.What is the strategies that you used?

• The income is the cash that originates from the business which for this situation of cafe.
• The income is imperative to maintain the business, yet increasingly significant is the benefit.
• In the event that the business isn't gaining benefits or the benefits are negative, at that point it's anything but a productive endeavor though if the benefits are certain, the business can proceed.
• The income is given by the result of the quantity of units sold and the cost at which they are sold.
• The benefit is the distinction between the income and the expenses.
• The income is higher in the season of pinnacle hours i.e, the supper times or the occasions amid occasions and celebrations.
• The income may be low on occasion when there is outrageous climate conditions and so forth.
• the procedures which are required to build the benefits rely upon the flexibility of the products.
• In the event that the versatility is low i.e, there are no indian cafes, at that point the benefit could be earned by expanding the costs as a result of the way that the flexibility for Indian nourishment is low, less substitutes are accessible.
• However, on the off chance that there are more in the area, the versatility would be high.
• The procedures could be packaging of food. Ex: a monetary supper for the understudies at a lower cost and a more expensive rate group for corporates which may incorporate conventional beverages or any such complimentary sustenance thing. A type of value segregation could be practiced like the glad hours where the costs could be kept low in the non peak hours or children cordial cafes which would help draw in the families.
• The eatery could offer limits at the home conveyance and consequently could expand deals. the dishes which are more sought after could be valued somewhat higher than different ones and the income could be separated from them or terms like"chef extraordinary", or the" day unique " could be utilized for exceptional costly dishes.

NOTE:-As HOMEWORKLIB RULES rule, 4 questions is enough if you want please upload it as seperate question