Total profit
Night Timers Co. manufactures glow-in-the dark products in
10 ft. rolls. At present the company’s maximum production capacity is 140,000
rolls per year. The cost is described as: C= $50,000 + 0.25 Q. The company
seeks a price that maximizes profit & believe they should be able to sell
at least 125,000 rolls of product per year. The demand forecast for the product
is: Q= 350,000 – 200,000P.
Calculate the following, assuming that the company maximizes
profit:
a. quantity
b. price
c. total cost
d. total revenue
e. total profit
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