Question
How many units must the manufacturer produce and sell in order to maximize profit?
Determining the number of units that a manufacturer must produce and sell in order to maximize profit requires analyzing the relationship between the production and sales volumes, the cost of production, and the revenue generated from sales.
To determine the optimal production and sales volume, the manufacturer must first identify the fixed costs associated with production, such as rent, salaries, and equipment costs. These costs do not vary based on the number of units produced or sold. The manufacturer must also identify the variable costs associated with production, such as materials, _____________ ____________ _____________ _____ _____________ __ ______ ____________ __________ ___________ __ ________ ________ _____________ _______.
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The data of advertisement expenditure (X) and sales (Y) of a company for 10 years shown in Table, determine the correlation coefficient between these variables
Advertisement Expenditure Rs. (X) | Sales Rs. (Y) | ||||||
6 | 60 | ||||||
5 | 55 | ||||||
5 | 50 | ||||||
4 | 40 | ||||||
3 | 35 | ||||||
2 | 30 | ||||||
2 | 20 | ||||||
1.5 | 15 | ||||||
1.0 | 11 | ||||||
0.5 | 10 |
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