XYZ company’s cost function for the next four months is
C = 500,000 + 5Q
A. Find the BE dollar volume of sales if the selling price is br. 6 / unit
B. What would be the company’s cost if it decides to shut down operations for the next four
months
C. If, because of strike, the most the company can produce is br. 100,000 units, should it
shut down? Why or why not
XYZ company’s cost function for the next four months is
C = 500,000 + 5Q
A. Find the BE dollar volume of sales if the selling price is br. 6 / unit
B. What would be the company’s cost if it decides to shut down operations for the next four
months
C. If, because of strike, the most the company can produce is br. 100,000 units, should it
shut down? Why or why not
why post the question twice?
revenue is cost * units
(A) So since BE means cost = revenue, you just need to solve
6Q = 500,000 + 5Q
(B) they told you at the top what the 4-month cost is. That is still true, even if Q=0
(C) find revenue for 100,000. If less than cost, shut down.
XYZ company’s cost function for the next four months is
C = 500,000 + 5Q
A. Find the BE dollar volume of sales if the selling price is br. 6 / unit
B. What would be the company’s cost if it decides to shut down operations for the next four
months
C. If, because of strike, the most the company can produce is br. 100,000 units, should it
shut down? Why or why not