Question 1 A. Jamaica Biscuit Company produces 8000 cases of water crackers weekly. Based on the company’s production costs throughout the years, they figure that it will cost them $40.00 to make a case of water cracker. There will also be a cost for running the equipment for an entire week that they figure to be $5400, regardless of how many cases of water crackers they make. i. Derive the cost function for the company for a week. ii. What is the company’s total cost for a week? iii. If the company decides to sell its 8000 cases of water crackers for $70 each. Derive the company’s revenue function and then calculate its total revenue for the week?
Question 1
A. Jamaica Biscuit Company produces 8000 cases of water crackers weekly. Based on
the company’s production costs throughout the years, they figure that it will cost them
$40.00 to make a case of water cracker. There will also be a cost for running the
equipment for an entire week that they figure to be $5400, regardless of how many cases
of water crackers they make.
i. Derive the cost function for the company for a week.
ii. What is the company’s total cost for a week?
iii. If the company decides to sell its 8000 cases of water crackers for $70 each. Derive
the company’s revenue function and then calculate its total revenue for the week?
iv. Derive the company’s profit function.
v. What is the company’s profit or loss for a week?
vi. How many cases of crackers must be sold for the company to make a profit of $
747, 600?
vii. At what point does the company break-even?
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