MGAB03H3 Chapter Notes - Chapter 3: Marginal Cost, Quadratic Equation, Marginal Revenue
14 Aug 2015
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Integrating across the curriculum: economics and marketing nonlinear revenue, maximize profits, cvp assumptions hollis company manufactures and markets a regulator used to maintain high levels of accuracy in timing clocks. The market for these regulators is limited and highly dependent upon the selling price. Based upon past relationships between the selling price and the resulting demand, as well as an informal survey of customers, management derived the following demand function, which is highly representative of the actual relationships. The estimated manufacturing and selling costs for the coming year are as follows: ,000 per year: write the function for total revenue. Explain: for the past several years, assume the company sold regulators at the price you calculated in part (e) and that volume varied between 375 and 425 units per year.
