ch8_problems

# ch8_problems - P1 a Price 69.99 59.99 49.99 39.99 29.99...

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P1. a. Price Quantity Variable Cost* CM/Unit Total CM Fixed Costs Profit 69.99 10,000 36.50 33.49 334,900 120,000 214,900 59.99 15,000 35.00 24.99 374,850 120,000 254,850 49.99 25,000 33.50 16.49 412,250 120,000 292,250 39.99 40,000 32.00 7.99 319,600 120,000 199,600 29.99 60,000 30.50 -0.51 (30,600) 120,000 (150,600) * Equals 15% of price + \$20 + \$6 b. The profit maximizing price is \$49.99, which yields a profit of \$292,250. P3. a. Price of Rover Quantity of Rover Price of Royal Quantity of Royal Total Revenue 1 Cost of Rover 2 Cost of Royal 3 Profit 4 8.99 35,000 16.99 11,000 501,540 210,000 99,000 192,540 9.99 34,500 16.99 11,300 536,642 207,000 101,700 227,942 10.99 34,000 16.99 11,500 569,045 204,000 103,500 261,545 11.99 33,000 16.99 12,000 599,550 198,000 108,000 293,550 12.99 30,000 16.99 13,000 610,570 180,000 117,000 313,570 13.99 25,000 16.99 14,000 587,610 150,000 126,000 311,610 14.99 15,000 16.99 15,000 479,700 90,000 135,000 254,700 15.99 10,000 16.99 19,000 482,710 60,000

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ch8_problems - P1 a Price 69.99 59.99 49.99 39.99 29.99...

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