Class Ib:
Name:
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Midterm 2
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Makeup Problem
Instructions:
Complete this problem individually. You may use your notes and/or textbook, but no other outside
sources. You should work alone. You should NOT discuss this problem with anyone else. You may
NOT get help at the tutoring center or from a tutor. You may use a calculator. Make sure to
show the work that supports your answer on a copy of this page printed from a computer. Be sure
that your work is organized and legible.
This must be turned in by 8:35am on Monday, April 8”. I will not accept late submissions for
any reason. I will accept early submissions. You can earn up to 15 points on Midterm 2, but not
more than the difference of 90 and your score.
1. Suppose a company has fixed costs of $4500 arid variable costs of
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per unit, where xztotal # of units produced. Suppose that its selling price is
dollars per unit.
a) What is the minimum cost?
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b) How many units must be sold to get the maximum revenue?
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c) Find the profit function, P(x). Write your answer in standard form.
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d) What is the maximum profit?
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e) How many units must be sold to breakeven?
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