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1. A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they can produce 100,000 chips per week at a cost of $40 per chip, and sell them for $65 per chip. They also find that they can produce 125,000 chips per week at a cost of $35 per chip, and sell them for $63 per chip. How much profit can they expect to earn if they produce 130,000 chips per week?

2006-10-12 22:28:13 · 5 answers · asked by pmgstudios 1 in Science & Mathematics Mathematics

5 answers

The variable cost is 15 per chip (fixed cost is 2.5 m)

when 100,000 produced cost = 100000x15 + 2500,000 = 4,000,000 >>> $40 per chip

when 125,000 produced cost = 125000x15 + 2500,000 = 4,375,000 >>> $35 per chip

Profit is

(65-40) x 100,000 + (63-15) x 25,000 + (P-15) x 5,000

P is not given, so you have to obtain the selling price of the last extra 5,000 chips before you can work out the total profit

2006-10-12 22:44:52 · answer #1 · answered by ◄Hercules► 6 · 1 0

cost to make 100,000 chips is 4,000,000
cost to make 125,000 is 4,375,000
cost for extra chips is (4375000-4000000)/25000=15/chip
for 30000 extra cost is 30000*15=450,000 for a total of 4,450,000

selling:
from 100000=6,500,000
from 125000=7,875,000
additional revenue=(7875000-6500000)/25000=55 per chip.

revenue from 130000 chips =6,500,000+30,000*55=8,150,000

profit=revenue - cost=8,150,000-4,450,000=$3,700,000

2006-10-20 12:11:59 · answer #2 · answered by yupchagee 7 · 0 0

Scaled by 1,000:
P1 = (100, 1500)
P2 = (125, 3500)
p-1500 = (2000/25)(n-100)
p-1500 = 80n - 8000
p = 80n - 6500
"unscaling":
p = 80n - 6,500,000
m = 80
p0 = -6,500,000
n0 = 81,250

p(130,000) = 80*130,000 - 6,500,000 = 3,900,000

2006-10-12 22:57:53 · answer #3 · answered by Helmut 7 · 0 0

65-40=25
63-35=28
(125000-100000)/(28-25)=(125000-130000)/(28-x)
profit per chip = x= 28.6

2006-10-12 22:55:13 · answer #4 · answered by shiva1632 2 · 0 0

SORRY I DO NOT KNOW THE ANSWER

2006-10-12 22:36:20 · answer #5 · answered by gjmb1960 7 · 0 3

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