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A rm makes two products: frying pens and saucepans. Frying pens sell for 544 each and saucepans sell for $34 each. The variable cost of making a

A firm makes two products: frying pans and saucepans. Frying pans sell for $44 each and saucepans sell for $34 each. The variable cost of making a frying pan is $27.0, and the variable cost of making saucepans is $9.4. The firm has additional manufacturing costs of $2.4 million.

Screen Shot 2018-04-03 at 9.22.53 PM.png

Screen Shot 2018-04-03 at 9.22.53 PM.png

A firm makes two products: frying pens and saucepans. Frying pens sell for 544 each and saucepans sell
for $34 each. The variable cost of making a frying pan is $2111], and the 1«variable cost of making saucepans
is $9.4. The firm has additional manufacturing costs of $2.4 million. Required:
1. If the firm sells 10o more saucepens. what is the additional profit to the firm? —:I 2. If the firm could sell either one more saucepan or one more frying pan. which product would the firm
prefer to sell? Q Sauoepen
CI Frying Pan 3. Not available in Connect.

Top Answer

1) Additional Profit = (Sell Price- Variable cost)*No of Additional Unit Additional Profit = (34-9.40)*100 Additional Profit... View the full answer

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