Asked by Alexia Montcerisier on Jul 04, 2024
Verified
AAA Dance Shoes makes dancing shoes with leather soles.The shoes cost $29 to manufacturer.The fixed cost for the product line is $45,000.The company has determined their demand function to be q = -200p + 30,000,where p is the price for each pair of shoes.Write the expense and revenue functions in terms of price.
Demand Function
A mathematical formula that describes the relationship between the demand for a good and its price, along with other factors like income and prices of related goods.
Expense Functions
Mathematical expressions that calculate the total costs associated with producing a certain number of goods or services.
Revenue Functions
Mathematical models that describe how a company's revenue is related to the selling price of its products and the quantity of products sold.
- Comprehend the methodology for calculating costs related to the manufacture of products.
- Examine strategies for maximizing profits by exploring different pricing models.
- Acquire an in-depth comprehension of how expense, revenue, and profit are interconnected within business contexts.
Verified Answer
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nasser alnasserJul 07, 2024
Final Answer :
E = -5,800p + 915,000;R = -200p2 + 30,000p
E = 29q + 45,000
E = 29(-200p + 30,000)+ 45,000
E = -5,800p + 915,000
R = pq = p(-200p + 30,000)
R = -200p2 + 30,000p
E = 29q + 45,000
E = 29(-200p + 30,000)+ 45,000
E = -5,800p + 915,000
R = pq = p(-200p + 30,000)
R = -200p2 + 30,000p
Learning Objectives
- Comprehend the methodology for calculating costs related to the manufacture of products.
- Examine strategies for maximizing profits by exploring different pricing models.
- Acquire an in-depth comprehension of how expense, revenue, and profit are interconnected within business contexts.