The Rejuvo Corp. manufactures granite countertop cleaner and polish. Quarterly s

Question

The Rejuvo Corp. manufactures granite countertop cleaner and polish. Quarterly sales Q is a random variable with a mean of 27,660 bottles and a standard deviation of 1,910 bottles. Variable cost is $15 per unit and fixed cost is $241,710. (a) Find the mean and standard deviation of Rejuvo's total cost. Mean Standard deviation$ (b-1) If all bottles are sold, what would the selling price have to be to break even, on average? (Round your answer to 2 decimal places.) Selling price (b-2) If al bottles are sold, what would the selling price have to be to make a profit of $15,565? (Round your answer to 2 decimal places.) Selling price

Explanation / Answer

GIven random variable

mean = 27660 sd=1910

Variable cost =$15 per unit

Fixed cost is $ 241,710

a) Mean of total cost = $27660 * 15 +241710

= $ 6,56,610

S.D of total cost = $15* 1910 = $ 28650

b) Selling prices = $(656610/27660) = $24

To make total profit $ 15,565

Selling price per unit = ( 656610+ 15565/27660) = $ 24.30

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