12. Mr. Farmer has been in the business of selling cheddar cheese for almost three years, and thus far has been able to control the volume of the product by varying the selling price. He is seeking to maximize its net profit. It has been concluded that the relationship between price and demand per month is approximately D = 2500 - 10p, where p is the price per unit in dollars. The fixed cost is $ 1,100 per month, and the variable cost is $ 15 per unit. What is the optimal no. of units that should be produced and sold per month? What is the maximum profit per month? What are the breakeven sales quantities (range of profitable demand) ?

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12. Mr. Farmer has been in the business of selling cheddar cheese for almost three years, and thus far
has been able to control the volume of the product by varying the selling price. He is seeking to maximize
its net profit. It has been concluded that the relationship between price and demand per month is
approximately D = 2500 - 10p, where p is the price per unit in dollars. The fixed cost is $ 1,100 per month,
and the variable cost is $15 per unit.
What is the optimal no. of units that should be produced and sold per month?
What is the maximum profit per month?
What are the breakeven sales quantities (range of profitable demand) ?
Transcribed Image Text:12. Mr. Farmer has been in the business of selling cheddar cheese for almost three years, and thus far has been able to control the volume of the product by varying the selling price. He is seeking to maximize its net profit. It has been concluded that the relationship between price and demand per month is approximately D = 2500 - 10p, where p is the price per unit in dollars. The fixed cost is $ 1,100 per month, and the variable cost is $15 per unit. What is the optimal no. of units that should be produced and sold per month? What is the maximum profit per month? What are the breakeven sales quantities (range of profitable demand) ?
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