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Chapter 1

ADM2302 Chapter 1: 1. Week 1 Extra Problems Solution


Department
Administration
Course Code
ADM 2302
Professor
Rim Jaber
Chapter
1

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1
Week 1 Extra Problems Solution
CHAPTER 1
INTRODUCTION
Problems
1.1
If Q units are produced per month, then
Monthly Profit = $0 {if Q = 0} and $20,000 + ($20 $10)Q {if Q > 0}.
Break-even point = $20,000 / ($20 $10) = 2000, so it will be profitable
to produce if Q > 2000.
1.3
a) Let Q be the number of units produced and sold. Then Monthly Profit
= $0 {if Q = 0} and $500,000 + ($35 $15)Q {if Q > 0}.Break-even
point = $500,000 / ($35 $15) = 25,000.
b) Let Q be the number produced and s the number that can be sold.
Then
Profit = [0 if Q = 0] and [-$500,000 + $35 * MIN(Q, s) $15Q if Q > 0].
c)
d) Q s.
1.4
a) $30,000,000
b) $1,666.67
c) $1,333.33
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