Use the Excel Spreadsheet data stated below to determine the Optimal Q value for
ID: 1165514 • Letter: U
Question
Use the Excel Spreadsheet data stated below to determine the Optimal Q value for the following scenario regarding the market for crab meat:
Market report: We project an average market price of $450 per 20lb container of crab meat.
First Mate’s report: Fixed costs at $750 per month. There are no changes to variable costs.
FC 7500 VC 100 Base 5 Increasing Q FC VC TC MC 0 7,500.00 0 7,500.00 0 1 7,500.00 105.00 7,605.00 105.00 2 7,500.00 220.00 7,720.00 115.00 3 7,500.00 345.00 7,845.00 125.00 4 7,500.00 480.00 7,980.00 135.00 5 7,500.00 625.00 8,125.00 145.00 6 7,500.00 780.00 8,280.00 155.00 7 7,500.00 945.00 8,445.00 165.00 8 7,500.00 1,120.00 8,620.00 175.00 9 7,500.00 1,305.00 8,805.00 185.00 10 7,500.00 1,500.00 9,000.00 195.00 11 7,500.00 1,705.00 9,205.00 205.00 12 7,500.00 1,920.00 9,420.00 215.00 13 7,500.00 2,145.00 9,645.00 225.00 14 7,500.00 2,380.00 9,880.00 235.00 15 7,500.00 2,625.00 10,125.00 245.00 16 7,500.00 2,880.00 10,380.00 255.00 17 7,500.00 3,145.00 10,645.00 265.00 18 7,500.00 3,420.00 10,920.00 275.00 19 7,500.00 3,705.00 11,205.00 285.00 20 7,500.00 4,000.00 11,500.00 295.00 21 7,500.00 4,305.00 11,805.00 305.00 22 7,500.00 4,620.00 12,120.00 315.00 23 7,500.00 4,945.00 12,445.00 325.00 24 7,500.00 5,280.00 12,780.00 335.00 25 7,500.00 5,625.00 13,125.00 345.00 26 7,500.00 5,980.00 13,480.00 355.00 27 7,500.00 6,345.00 13,845.00 365.00 28 7,500.00 6,720.00 14,220.00 375.00 29 7,500.00 7,105.00 14,605.00 385.00 30 7,500.00 7,500.00 15,000.00 395.00 31 7,500.00 7,905.00 15,405.00 405.00 32 7,500.00 8,320.00 15,820.00 415.00 33 7,500.00 8,745.00 16,245.00 425.00 34 7,500.00 9,180.00 16,680.00 435.00 35 7,500.00 9,625.00 17,125.00 445.00 36 7,500.00 10,080.00 17,580.00 455.00 37 7,500.00 10,545.00 18,045.00 465.00 38 7,500.00 11,020.00 18,520.00 475.00 39 7,500.00 11,505.00 19,005.00 485.00 40 7,500.00 12,000.00 19,500.00 495.00 41 7,500.00 12,505.00 20,005.00 505.00 42 7,500.00 13,020.00 20,520.00 515.00 43 7,500.00 13,545.00 21,045.00 525.00 44 7,500.00 14,080.00 21,580.00 535.00 45 7,500.00 14,625.00 22,125.00 545.00 46 7,500.00 15,180.00 22,680.00 555.00 47 7,500.00 15,745.00 23,245.00 565.00 48 7,500.00 16,320.00 23,820.00 575.00 49 7,500.00 16,905.00 24,405.00 585.00 50 7,500.00 17,500.00 25,000.00 595.00 51 7,500.00 18,105.00 25,605.00 605.00 52 7,500.00 18,720.00 26,220.00 615.00 53 7,500.00 19,345.00 26,845.00 625.00 54 7,500.00 19,980.00 27,480.00 635.00 55 7,500.00 20,625.00 28,125.00 645.00 56 7,500.00 21,280.00 28,780.00 655.00 57 7,500.00 21,945.00 29,445.00 665.00 58 7,500.00 22,620.00 30,120.00 675.00 59 7,500.00 23,305.00 30,805.00 685.00 60 7,500.00 24,000.00 31,500.00 695.00 61 7,500.00 24,705.00 32,205.00 705.00 62 7,500.00 25,420.00 32,920.00 715.00 63 7,500.00 26,145.00 33,645.00 725.00 64 7,500.00 26,880.00 34,380.00 735.00 65 7,500.00 27,625.00 35,125.00 745.00 66 7,500.00 28,380.00 35,880.00 755.00 67 7,500.00 29,145.00 36,645.00 765.00 68 7,500.00 29,920.00 37,420.00 775.00 69 7,500.00 30,705.00 38,205.00 785.00 70 7,500.00 31,500.00 39,000.00 795.00 71 7,500.00 32,305.00 39,805.00 805.00 72 7,500.00 33,120.00 40,620.00 815.00 73 7,500.00 33,945.00 41,445.00 825.00 74 7,500.00 34,780.00 42,280.00 835.00 75 7,500.00 35,625.00 43,125.00 845.00 76 7,500.00 36,480.00 43,980.00 855.00 77 7,500.00 37,345.00 44,845.00 865.00 78 7,500.00 38,220.00 45,720.00 875.00 79 7,500.00 39,105.00 46,605.00 885.00 80 7,500.00 40,000.00 47,500.00 895.00 81 7,500.00 40,905.00 48,405.00 905.00 82 7,500.00 41,820.00 49,320.00 915.00 83 7,500.00 42,745.00 50,245.00 925.00 84 7,500.00 43,680.00 51,180.00 935.00 85 7,500.00 44,625.00 52,125.00 945.00 86 7,500.00 45,580.00 53,080.00 955.00 87 7,500.00 46,545.00 54,045.00 965.00 88 7,500.00 47,520.00 55,020.00 975.00 89 7,500.00 48,505.00 56,005.00 985.00 90 7,500.00 49,500.00 57,000.00 995.00 91 7,500.00 50,505.00 58,005.00 1,005.00 92 7,500.00 51,520.00 59,020.00 1,015.00 93 7,500.00 52,545.00 60,045.00 1,025.00 94 7,500.00 53,580.00 61,080.00 1,035.00 95 7,500.00 54,625.00 62,125.00 1,045.00 96 7,500.00 55,680.00 63,180.00 1,055.00 97 7,500.00 56,745.00 64,245.00 1,065.00 98 7,500.00 57,820.00 65,320.00 1,075.00 99 7,500.00 58,905.00 66,405.00 1,085.00Explanation / Answer
Consider the given problem here “Q” be the quantity measured in “20 lbs” and the “FC”, “VC” and “MC” for each “Q” is given in the table. Now, here the average price is given by “450” per “20 lbs”. So, at the optimum “P” must be equal to “MC”.
Now, here for “Q=35” the corresponding “MC” is “445 < P”, => it is optimum to increase “Q”. Now, for “Q=36” the corresponding “MC” is “455 > P”, => it is optimum to reduce “Q”. So, here at the given “P” and “MC” the optimum “Q” is “35”.
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