Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. q2. ali has started a small business deals with a

Q2. Ali has started a small business deals with a certain product, he achieved an...

70.2K

Verified Solution

Question

Accounting

image

Q2. Ali has started a small business deals with a certain product, he achieved an amount of sales OMR 13200, at the price of OMR 220 per unit, but when he reduced the price by OMR 30 per unit he achieved sales of OMR 17100 . If the variable cost per unit is OMR 50, and the fixed cost is OMR 4600 . Required: i. From the above information, formulate the price function, and the cost function of this business. ii. Use the functions to determine the following: a. Profit maximizing quantity. b. Profit-maximizing price. c. Maximum profit value. d. Revenue-maximizing quantity. iii. Suggest a reduction in the fixed cost which gives a maximum profit value between OMR (4000 and 5400), calculate the maximum profit value after the cost reduction

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A business magazine was conducting a study in days they spent traveling each year

Statistics
Q

Are all genes turned on all the time in all cells? Why or why not? (write...

Biology
Q

‘There is no settled law on the meaning and effect of letters of intent. The court...

Civil Engineering
Q

ACID/BASE PRACTICE PROBLEMS (a) 3 moles of sodium nitrate are placed in 1 L of water. Calculate...

Chemistry
Q

What is an Estimated Returns Inventory An example of a Closing journal entry for sales revenue and sales...

Accounting
Q

From the beginning the English treated the Native Americans as O subjects of the Crown...

Biology
Q

Many factors can influence the rate of photosynthesis as it is a(n) catalyzed reaction that...

Biology
Q

A cylinder of length L and radius b has it axis coincident with the x...

Physics
Q

Explain why the two figures show equivalent graphs Then draw a third equivalent graph D...

Algebra
Q

w4 12 W W4 12 W 11 Use positive exponents only

Algebra
Q

Required information Skip to question [The following information applies to the questions displayed...

Accounting
Q

Toxaway Company is a merchandiser that segments its business into two divisionsCommercial and Residential. The...

Accounting