Gamma Corp. manufactures and sells widgets for $6.00 each.Therefore, its total revenue, TR, from the sale of X widgets in ayear is
TR=$6X
It costs Gamma $2 for materials and labour to produce eachwidget. In addition, Gamma expects to incur $80,000 of other costsduring a year. Therefore, Gamma’s total costs for the year, TC, areexpected to be
TC =$2X+ $80,000
Gamma’s expected net income, NI, for the year will be
NI =TR -TC
=$6X - ($2X+$80,000)
=$4X-$80,000
PLEASE ANSWER ALL QUESTIONS WILL FULL WORKINGS
a. What is the slope and TR-intercept of a TR vs. X plot? (NEEDANSWERS WILL FULL AND CLEAR WORKINGS)
b. What is the slope and TC-intercept of a TC vs. X plot? (NEEDANSWERS WILL FULL AND CLEAR WORKINGS)
c. What is the slope and NI-intercept of an NI vs. X plot?(NEEDANSWERS WILL FULL AND CLEAR WORKINGS)
d. Which of the three plotted lines is steepest? (NEED ANSWERSWILL FULL AND CLEAR WORKINGS)
e. How much does NI increase for each widget sold?(NEED ANSWERSWILL FULL AND CLEAR WORKINGS)
f. If Gamma were able to reduce its materials and labour cost to$1.75 per widget, state for each plotted line whether its slopewould increase, decrease, or remain unchanged. (NEED ANSWERS WILLFULL AND CLEAR WORKINGS)
PLEASE ANSWER ALL QUESTIONS WILL FULL WORKINGS. PLEASE SHOW HOWTHE ANSWER WAS DERIVED
