Chat with us, powered by LiveChat Step 4 – The Profit ­Maximizing Output Level | acewriters

Step 4: Choose the Profit ­Maximizing Output LevelThe CEO’s next question is, "What level of output would be required to maximize our profit on the Android01?" You have calculated the variable cost­per­unit for different levels of production. From market research, you have a schedule of prices for these levels. The information is summarized in the table below: Number of Units Variable Cost-per-Unit ($) Sale Price-per-Unit ($) 200 60,000 70,000 250 54,000 66,000 300 48,000 64,000 350 46,000 59,000 400 45,000 52,000 A recommendation on output could affect everyone in the company, from management to sales, to the floor manager and assembly line workers! You don’t want to get this one wrong so you take some extra time to proof your calculations.Question 4: Based on profit­maximization analysis, what level of output should you recommend to the CEO?

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