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Q

TC

TFC

TVC

AFC

AVC

ATC

mc

TR

MR

Profit

Average

Profit

                     

Profit

Margin

0

7000

7000

NIL

NIL

NIL

NIL

NIL

0

NIL

-7000

NIL

nil

100

14000

7000

7000

70

70

140

70

19000

190

5000

50

26%

200

23000

7000

16000

35

80

115

90

38000

190

15000

75

39%

300

32000

7000

25000

23.33

83.33

106.67

90

57000

190

25000

83.33

44%

400

43000

7000

36000

17.5

90

107.5

110

76000

190

33000

82.5

43%

500

52000

7000

45000

14

90

104

90

95000

190

43000

86

45%

600

74000

7000

67000

11.67

111.67

123.33

220

114000

190

40000

66.67

35%

700

97000

7000

90000

10

128.57

138.57

230

133000

190

36000

51.43

27%

800

111000

7000

104000

8.75

130

138.75

140

152000

190

41000

51.25

27%

900

132000

7000

125000

7.78

138.89

146.67

210

171000

190

39000

43.33

23%

1000

152000

7000

145000

7

145

152

200

190000

190

38000

38

20%

Suppose that fire pits fall out of fashion and prices fall worldwide to $95. How many units should the manager choose to produce? Explain your answer in 50-100 words.

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019

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