bertusgeert 1 #1 January 30, 2006 It's 12:30 and I'm tired...but: A manufacturer can produce 7200 units for a total profit of 16600 dollars; but, if he increases his production to 11200 units, then his profit becomes 28600 dollars. It follows that his fixed cost must be ___ dollars and his net profit per unit produced must be ___ dollars Note: We are assuming, as usual, that the profit is a linear function of the production. So I worked it out. m=3, the If you makes the units x as in any supply demand, then $ is y. That means that fixed cost is -5000! Am I retarded or just stupid? --------------------------------------------- As jy dom is moet jy bloei! Quote Share this post Link to post Share on other sites
eeneR 3 #2 January 30, 2006 You want who to do what at this ungodly hour? She is not a "Dumb Blonde" - She is a "Light-Haired Detour Off The Information Superhighway." eeneR TF#72, FB#4130, Incauto Quote Share this post Link to post Share on other sites
airtwardo 7 #3 January 30, 2006 I like pie...Pie is good! It's late....have some pie. ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
eeneR 3 #4 January 30, 2006 Mmm Pie.. When you come back bring more pie! She is not a "Dumb Blonde" - She is a "Light-Haired Detour Off The Information Superhighway." eeneR TF#72, FB#4130, Incauto Quote Share this post Link to post Share on other sites
airtwardo 7 #5 January 30, 2006 You like pie too?? ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
eeneR 3 #6 January 30, 2006 QuoteYou like pie too?? The history of the world acoooording to Weeeeeble and Bob.....This time on the History of the World acoooording to Weeeeeble and Bob....She is not a "Dumb Blonde" - She is a "Light-Haired Detour Off The Information Superhighway." eeneR TF#72, FB#4130, Incauto Quote Share this post Link to post Share on other sites
JohnMitchell 16 #7 January 30, 2006 I got the same answer as you. Now go get some sleep. Where's my economy of scale, darn it? Quote Share this post Link to post Share on other sites
bertusgeert 1 #8 January 30, 2006 QuoteI got the same answer as you. Now go get some sleep. Where's my economy of scale, darn it? Hell if I know! Got an A in ECON 201, 202, ACC 201, 202 But I haven't heard of negative fixed cost. I'm not sinophobic or anything, but this so called "professor" should consider switching to the Chinese department. This is ridiculous. Thanks anyhow. Now get in the kitchen and make me some pie! --------------------------------------------- As jy dom is moet jy bloei! Quote Share this post Link to post Share on other sites
airtwardo 7 #9 January 30, 2006 ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
homer 0 #10 January 30, 2006 Pie and chips sound good. CSA #699 Muff #3804 Quote Share this post Link to post Share on other sites
airtwardo 7 #11 January 30, 2006 QuotePie and chips sound good. *** FREE! Pie & Chips... ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
bob.dino 1 #12 January 30, 2006 Must be receiving grants for producing these units . Quote Share this post Link to post Share on other sites
waltappel 1 #13 January 30, 2006 QuoteIt's 12:30 and I'm tired...but: A manufacturer can produce 7200 units for a total profit of 16600 dollars; but, if he increases his production to 11200 units, then his profit becomes 28600 dollars. It follows that his fixed cost must be ___ dollars and his net profit per unit produced must be ___ dollars Note: We are assuming, as usual, that the profit is a linear function of the production. So I worked it out. m=3, the If you makes the units x as in any supply demand, then $ is y. That means that fixed cost is -5000! Am I retarded or just stupid? If profit is a linear function of production, and you have two points, then you can define the formula for profit as: y = mx + b where y is the profit m is the slope b is the "break even value" m = (28600 - 16600) / (11200 - 7200) = 3 So, so far y = 3x + b to calculate b, substitute one of the point values 16600 = 3(7200) + b 16600 - 21600 = b b = -5000 so the formula is y - 3x - 5000 Setting x to 0 (zero production) means profit is -$5000, so his fixed cost is $5000. If you set profit to zero, then: 0 = 3x -5000 or x = 5000/3 = 1666.67 units That's how many he must make and sell to break even, so he needs to make 5000 bucks profit on 1667 units. Walt Quote Share this post Link to post Share on other sites
SkydiveStMarys 0 #14 January 30, 2006 Oh my God, my brain hurts from all of this and I got 6 hours of sleep. You actually did use what you learned in HS math class. BobbiA miracle is not defined by an event. A miracle is defined by gratitude. Quote Share this post Link to post Share on other sites
waltappel 1 #15 January 30, 2006 QuoteOh my God, my brain hurts from all of this and I got 6 hours of sleep. You actually did use what you learned in HS math class. Bobbi I never learned anything in HS math class. I deeply resented being forced to go to the cesspool of insanity and violence they called high school and took only the bare minimum required to pass. This became a bit of a problem when I decided to get a BS in Electrical Engineering, so I took loads of math to get ready for that. I still remember and use it--but only when I have to! Walt Quote Share this post Link to post Share on other sites
SkydiveStMarys 0 #16 January 30, 2006 My Dad was an elerctrical engineer for RCA for many, many, many years. He retired about 12 yrs ago. God he was/is a math wiz. Who knew? BobbiA miracle is not defined by an event. A miracle is defined by gratitude. Quote Share this post Link to post Share on other sites
AlexCrowley 0 #17 January 30, 2006 Hmm I find myself in a somewhat similar position, where does one start in reaquainting oneself with mathematics? TV's got them images, TV's got them all, nothing's shocking. Quote Share this post Link to post Share on other sites
waltappel 1 #18 January 30, 2006 QuoteHmm I find myself in a somewhat similar position, where does one start in reaquainting oneself with mathematics? one-two-three-four-five-six... Walt Quote Share this post Link to post Share on other sites
SkydiveStMarys 0 #19 January 30, 2006 1 fish, 2 fish, red fish, blue fish.BobbiA miracle is not defined by an event. A miracle is defined by gratitude. Quote Share this post Link to post Share on other sites
JohnMitchell 16 #20 January 31, 2006 QuoteHmm I find myself in a somewhat similar position, where does one start in reaquainting oneself with mathematics? My high school daughter is a paid math tutor at the local community college she attends. She gets a lot of us old people getting back into college and trying to recall high school math. She's an especially popular tutor because she explains fractions so well. I gotta brag, she got an 800 on her Math II SAT. Quote Share this post Link to post Share on other sites
livendive 8 #21 January 31, 2006 Quote I gotta brag, she got an 800 on her Math II SAT. Then ask her the coconut question! I've been meaning to ask mine to figure it out for me. Blues, Dave"I AM A PROFESSIONAL EXTREME ATHLETE!" (drink Mountain Dew) Quote Share this post Link to post Share on other sites
