Explore BrainMass

# management scieThe manager of a small firm is considering whether to produce a new product that would require leasing some special equipment at a cost of \$20,000 per monthnce

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

1) The manager of a small firm is considering whether to produce a new product that would require leasing some special equipment at a cost of \$20,000 per month. In addition to this leasing cost, a production cost of \$10 would be incurred for each unit of the product produced. Each unit sold would generate \$20 in revenue.
Develop a mathematical expression for the monthly profit that would be generated by this product in terms of the number of units produced and sold per month. then determine how large this number needs to be each month to make it profitable to produc the product.

I got profit=\$20Q-(\$20,000+\$10Q) = -\$20,000+\$10Q, IF Q>0

SO \$10Q=\$20,000 = \$20,000/\$10 = Q=2,000