document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1164636>Question 1164636</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A Manufacturer of microcomputers produces three different models as shown in Table 2. The following summarizes wholesale prices, material cost per unit, and labor cost per unit.Annual fixed cost are $25 million. <BR>\n" );
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document.write( "                        Model 1          Model 2 	     Model 3               <BR>\n" );
document.write( "Wholesale price/unit	  500	         1000                 1500<BR>\n" );
document.write( "Material Cost / unit	  175	         400                  750<BR>\n" );
document.write( "Labor cost / unit	  100	         150	              225\r<BR>\n" );
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document.write( "Required:\r<BR>\n" );
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document.write( "i.	Determine a joint revenue function for sales of the three different microcomputer models\r<BR>\n" );
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document.write( "ii.	Determine the annual costs function for the manufacturing the three models.\r<BR>\n" );
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document.write( "iii.	Determine the profit function for sales of the three models?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #853535 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(53618)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=853535\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
document.write( "A Manufacturer of microcomputers produces three different models as shown in Table 2. <BR>\n" );
document.write( "The following summarizes wholesale prices, material cost per unit, and labor cost per unit. <BR>\n" );
document.write( "Annual fixed cost are $25 million.\r<BR>\n" );
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document.write( "                      Model 1  Model 2  Model 3\r\n" );
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document.write( "Wholesale price/unit   $500     $1000    $1500\r\n" );
document.write( "Material Cost / unit   $175      $400     $750\r\n" );
document.write( "Labor cost / unit      $100      $150     $225\r\n" );
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document.write( "i. Determine a joint revenue function for sales of the three different microcomputer models<BR>\n" );
document.write( "ii. Determine the annual costs function for the manufacturing the three models.<BR>\n" );
document.write( "iii. Determine the profit function for sales of the three models?<BR>\n" );
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document.write( "(i)  The joint revenue function is the function of three arguments (n1,n2,n3), \r\n" );
document.write( "     where n1 is the number of units of Model 1, n2 is the number of units of Model 2, \r\n" );
document.write( "     and   n3 is the number of units of Model 3 produced per year.\r\n" );
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document.write( "     The joint revenue function is\r\n" );
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document.write( "        R(n1,n2,n3) = 500*n1 + 1000*n2 + 1500*n3.    <U>ANSWER to (i)</U>\r\n" );
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document.write( "     Part (i) is solved.\r\n" );
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document.write( "(ii)  The annual cost function is the function of three arguments (n1,n2,n3), \r\n" );
document.write( "      where n1 is the number of units of Model 1, n2 is the number of units of Model 2, \r\n" );
document.write( "      and   n3 is the number of units of Model 3 produced per year.\r\n" );
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document.write( "      The annual cost function is\r\n" );
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document.write( "          C(n1,n2,n3) = 25000000 + (175+100)*n1 + (400+150)*n2 + (750+225)*n3.    \r\n" );
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document.write( "                      = 25000000 +  275*n1     +    550*n2    +     975*n3.      <U>ANSWER to (ii)</U>\r\n" );
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document.write( "      Part (ii) is solved.\r\n" );
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document.write( "(iii)  The profit function is the function of three arguments (n1,n2,n3), \r\n" );
document.write( "       where n1 is the number of units of Model 1, n2 is the number of units of Model 2, \r\n" );
document.write( "       and   n3 is the number of units of Model 3 produced per year.\r\n" );
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document.write( "       The profit function is\r\n" );
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document.write( "           P(n1,n2,n3) = R(n1,n2,n3) - C(n1,n2,n3) = (500-275)*n1 + (1000-550)*n2 + (1500-975)*n3 - 25000000.    \r\n" );
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document.write( "                                                   =   225*n1     +   450*n2      + 525*n3 - 25000000.    <U>ANSWER to (iii)</U>\r\n" );
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document.write( "       Part (iii) is solved.\r\n" );
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document.write( "Solved completely.\r<BR>\n" );
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