[aaishas]

phh yay fixed overheads was 8,00,000 and variable overheads 3… but total variable over head per unit was $21 i belive..

the question said for every $2 increase in price demand fell by 2000 units ..
and situation was. whats should be the price at 2,50,000 units..
so ..
a = 250000/2000*2 = 250
MR = a-2bq
21 = 250 – 2(.001) q
21 = 250 – .002q
229 = .002 q
q = 114500

P = a-bq
= 250 – .001* 114500
= 250 – 114.5
= 135.5

now that i think of the question, demand was already given as 250000 units..
so y did i calculate the Q ? :S :S :S

I have messed it up havnt I ?? Can anyone please tell me the right wayy

[Author]

Posts