Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC, data with the following results, where Q is quantity. TR= -0.008Q² + 32Q TC = 0.005Q² +2.2Q + 10 Given the computed amount Q in problem #2, its corresponding maximum profit is PBlank 1 (round off to whole number).

Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC, data with the following results, where Q is quantity. TR= -0.008Q² + 32Q TC = 0.005Q² +2.2Q + 10 Given the computed amount Q in problem #2, its corresponding maximum profit is PBlank 1 (round off to whole number).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 8E

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Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC, data with the following results, where Q is quantity. TR= -0.008Q² + 32Q TC = 0.005Q² +2.2Q + 10 The maximum profit occurs when Q = Blank 1 units (round off to whole number).
Which of the following statements related to cost estimation methods is false? a. The three methods determine a slope and an intercept. b. The most complex method of cost estimation is the high-low method. C. None of the given answers. d. The least-squares regression method is the most accurate and reliable method to de compared to scatter-graph plot and high-low methods. The low-high method is LUsed to derive an estimated line of cost hehavior hy granhical pe here to search hp 10 & 7 V # 3 4 5 6 8 R Y 19 2.
Conveniece stores data 1) Use High-low calculate variable cost 2) Plot costs and estimate variable cost 3) Perform least squares regression 4) Estimate utilty costs for July assuming 300 hours of operation
A recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in table below (column 2). The engineering then talked to the firm’s marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 1 column 3). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? a) 100 ; b) 200 ; c) 300 ; d) 400 ; e) 500 show the computation how to solve it.
A recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in table below (column 2). The engineering then talked to the firm’s marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 1 column 3). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? a) 100 ; b) 200 ; c) 300 ; d) 400 ; e) 500 Show handwritten solutions.
A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is P=-0.25Q+ 250, where P is the unit sales price of the product and Q is the demand of solar panels. Given the following: • Total cost = Fixed cost + Variable cost • Revenue = Demand x Price • Profit = Revenue - Total cost 26. The equation that represent the total cost is: a. ($10,875+$20) Q b. $10,875-$20 Q c. $10,875 × $20 Q d. $10,875+$20 Q 27. The equation that represent the total revenue is: a. $0.25Q²+$250Q b. - $0.25Q²+$250Q c. - $0.25Q²-$250Q d. $0.25Q²-$250Q
For the following problem, what would be the objective function that aims at minimizing the total cost considering that X1, X2, X3, and X4 are the number of units produced and sold of Products 1, 2, 3, and 4, respectively? Manufacturing time (hr) per unit Machine Cost per hr ($) Product 1 Product 2 Product 3 Product 4 Capacity (hr). 10 2 4 2 500 5 3 1 2 380 4 7 1 450 Unit selling price ($) 75 45 O a. 20X1+30X2+40X3+20X4 O b. None of the answers OC. 75X1+70X2+55X3+45X4 Od. 63X1+52X2+53X3+34X4 123 دي دا فيا 70 2 55
Price and cost ($ per 1,000-gallon unit) Return t A municipal water utility employs quasi-fixed capital inputs-the water treatment plant and distribution lines to homes-to supply water to 20,000 households in the community it serves. The figure below shows the cost structure of this utility for various levels of water service. Quantity of water consumption is measured in 1,000-gallon units per month. AQFC is the average quasi-fixed cost curve, and LAC is long-run average cost. Long-run marginal cost, LMC, is constant and equal to $4 per 1,000-gallon unit. The inverse demand equation is P= 24 -0.0004Qd 10 14 MR Quantity (1,000-gallon units per month) Quasi-fixed capital inputs cost per month is $ LAC AQFC LMC D
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 4,000 450 5,000 550 5,400 600 5,900 700 6,400 750 7,000 a. Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. Do not round intermediate calculations. Compute b1 and bo (to 1 decimal). bị bo Complete the estimated regression equation (to 1 decimal). Do not round intermediate calculations b. What is the variable cost per unit produced (to 2 decimal)? Do not round intermediate calculations 2$ c. Compute the coefficient of determination (to 3…
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F Given Cost and Revenue functions C(q)=q³-8q² +59q + 5000 and R(q) = -3 -39² +2600q, what cost is incurred when marginal profit is $0? The costs are $ (Round to nearest cent.)