please show work The Ketchus L very ime Couspany manufactures two C e profit rs
ID: 1124345 • Letter: P
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please show work
The Ketchus L very ime Couspany manufactures two C e profit rs the low e The profit Irom the bich -quaity glove i kinds of an low quality glove. whereas 2 heours me necated wce as mach matenal io manafacture one ligh-quality quality glove is S2. Machane A is the onis ese gloves can be made. It takes 30 miniies the n wih male a high-ality glove p There is enoogh miaterial to make 24 low-quality gwe The plam works two s hour shits lt takes plove than it takes to manufacture one low qualty glove man each type of glove should the company make gloves pet d ne light-quality How Fiem XYZ is a monopoty. The fem seils hs proxduct in a market where the market demand tor the fim's product is: where: quantity demanded. SP=the selling price of the product Currently the firm sells its product charging $3.00 per unit. You are just hired by the firm and the firm's president asked you to evaluale the fim's curent pricing policy. Your job is to wite a full report for the firm's pricing polcy and recommend any changes you might think are necessary Fx pi rrExplanation / Answer
Answer : Given, QD = 20 - 2*P where P = 3 . Here the demand curve is negative sloping, i. e., there is an inverse relationship between price and demand. When price level varies then demand varies. The general pricing policy is
Total cost = selling price . Cost level is included in price lebel. As demand varies here so demand based pricing policy is not possible here. Therefore, for the given question the pricing policy is cost based.
As there is cost based pricing policy so by minimizing cost level firm can maximize it's profit.
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