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    The document discusses revenue, cost, and profit calculations for a company that produces DVDs and steel. It calculates the total cost for the DVD company to produce 350 discs for 40 days as $151,000. It asks what the marginal revenue per DVD should be if the company wants a $5 profit per DVD. It also calculates the total revenue as $200,000 if the company sells all the DVDs produced to a store. It finds the total cost for the steel company to produce 50 tons in 4 months and asks for the total revenue if the marginal revenue per kg is $80.

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    UTILITY EXERCISE

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    The document discusses revenue, cost, and profit calculations for a company that produces DVDs and steel. It calculates the total cost for the DVD company to produce 350 discs for 40 days as $151,000. It asks what the marginal revenue per DVD should be if the company wants a $5 profit per DVD. It also calculates the total revenue as $200,000 if the company sells all the DVDs produced to a store. It finds the total cost for the steel company to produce 50 tons in 4 months and asks for the total revenue if the marginal revenue per kg is $80.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views2 pages

    Utility Exercise

    Uploaded by

    ScribdTranslations
    The document discusses revenue, cost, and profit calculations for a company that produces DVDs and steel. It calculates the total cost for the DVD company to produce 350 discs for 40 days as $151,000. It asks what the marginal revenue per DVD should be if the company wants a $5 profit per DVD. It also calculates the total revenue as $200,000 if the company sells all the DVDs produced to a store. It finds the total cost for the steel company to produce 50 tons in 4 months and asks for the total revenue if the marginal revenue per kg is $80.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Subject: Revenue-cost-utility formulas

    A company's daily cost to make DVDs is $6.50, with the fixed cost per day being $1500. What is the
    cost of making 350 discs for 40 days?

    C(x)= 6.5 x + 1500

    C(x)= 6.5(350) +1500

    C(x)= 3775 Total

    3775*40= 151,000

    Now that company wants to have a marginal profit of $5.00 per DVD, what should be the marginal
    revenue it should manage per disc?

    The same company sells those DVDs to a record store, all the DVDs produced in those 40 days at a
    price of $200,000 What is its marginal revenue?

    A Company's daily cost to sell 1 Kg of Steel is 78.33, being its marginal cost $70.3 What is the Total
    cost to reproduce 50 Tons of Steel in 4 months?

    The same company wants to sell the kg of steel with a marginal revenue of $80.00. What is its
    total revenue?

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