Income Report for Mini-Z

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Presentation transcript:

Income Report for Mini-Z Question 3

Overview Discussion of Income Report for Mini-Z Calculations Conclusion Discussion of Profit-Maximizing Level Calculations Conclusion

Profit-Maximizing Level Question 3: Find Q, P, average cost, and profit for the MiniZ at the profit-maximizing level. (Again, the demand function for the MiniZ is: Q = 50,000 – 25*P.)   Question 3: Find Q, P, average cost, and profit for the MiniZ at the profit-maximizing level. (Again, the demand function for the MiniZ is: Q = 50,000 – 25*P.)

Calculations Income Report for Mini-Z Component Fixed Costs 2,700,000 Variable Cost per Unit 200 Demand Function 5,000 Price Average Cost 25 Profit 4,975 Calculations $5,000 (P) minus $25 (Average Cost) equals a profit of

Conclusion This question shows that the income report for Mini-Z is and the product price per unit is $4,975.00. This question shows that the income report for Mini-Z is and the product price per unit is $4,975.00.