Question 4: Based on profit-maximization analysis, what level of output should y
ID: 2780237 • Letter: Q
Question
Question 4: Based on profit-maximization analysis, what level of output should you recommend to the CEO?
200
60,000
70,000
250
54,000
66,000
300
48,000
64,000
350
46,000
59,000
400
45,000
52,000
A recommendation on output could affect everyone in the company, from management to sales, to the floor manager and assembly line workers! You don't want to get this one wrong so you take some extra time to proof your calculations.
Submit a spreadsheet showing your calculations in Excel. Provide a narrative analysis in Word. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of the company.
Number of Units Variable Cost per Unit ($) Sale Price per Unit ($)200
60,000
70,000
250
54,000
66,000
300
48,000
64,000
350
46,000
59,000
400
45,000
52,000
Explanation / Answer
Statement showing total contribution
Thus one should recommend to produce and sell 300 units
Sales price per unit Variable cost per unit Contribution per unit No of units Total contribution 70000 60000 10000 200 2000000 66000 54000 12000 250 3000000 64000 48000 16000 300 4800000 59000 46000 13000 350 4550000 52000 45000 7000 400 2800000Related Questions
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