The controller for Canandaigua Vineyards, Inc. has predicted the following costs at various levels of wine output.

(See attached)

The company's marketing manager has predicted the following prices for the firm's fine wines at various levels of sales.

(See attached)

1. Calculate the unit costs of wine production and sales at each level of output. At what level of output is the unit cost minimized?

2. Calculate the company's profit at each level of production. Assume that the company will sell all of its output. At what production level is profit maximized?

3 Which of the three output levels is best for the company?

4. Why does the unit cost of wine decrease as the output level increases? Why might the sales price per bottle decline as sales volume increase.

(The problem is putting it into a formula in order for profit maximization) I can analyze data it is getting it put into context that I don't know where to start.

...unit and in total if the government sets the price of the ... where MC=10, Thus, we get Q=8 units, P=$10.00 Corresponding AC is $8.00 Per unit profit = (P-AC ...

... 24 24 SMC Price and Costs (dollars). Price and Costs (dollars) 20 20 S 16 16 12 12 8 8 D 4 4. ... 12 per unit. ... Firm should produce 100 units. ...

... Each unit of output requires $5 worth of materials. ... case) MC=MR=80 for output level of 213 units. ... average variable costs, average total cost and marginal costs. ...

... can be sold (in integer units) at $57 per unit. ... to find a solution, how many units should the ... its output level such that MC=Marginal Revenue=Price to maximize...

...cost of producing the good in the question is a constant $10 per unit of output. ... It is less than Marginal cost of $10. So, optimal output should be 5 units. ...

...units. It should not produce the 9th unit as the marginal cost for this unit is more than 56. This job determines profit-maximizing or loss-minimizing output. ...