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Income Report for Mini-Z

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Presentation on theme: "Income Report for Mini-Z"— Presentation transcript:

1 Income Report for Mini-Z
Question 3

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

3 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.)

4 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

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


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