The Cookware Company Hereafter Tcc Started Production At Anotech, their Fully Owned Cookware Factory In Jiangmen China In 2005. they Were A One Stop -Shop For Innovative Cook Ware Material Producing For Many Different Global Cookware Brands. from The Start They Focused On Innovative Technology .they Were Pioneers In Dishwasher Safe And Hard Anodized Aluminium Cook Ware Selling Over 1 Million Pieces Per Month. the Management Of Tcc Is Planning To Venture Into the Manufacturing Of Aluminum Non-Stick Cookware Which Will Result In The Improvement Of The Overall Profit Of The Organisation .the Aluminium Non-stick Cookware Is Very Competitive And Subject To Frequent Changes. the Finance Team At Tcc Prepares a Monthly Budget As Part Of Their Planning And Management Control Process. The Data For The Forthcoming New Budget Period Related To The Aluminum Non-stick Cookware Is As Follows: the Variable Cost Of Producing An Aluminium Non-Stick Cookware Is N$21.the Planned Selling Price Of An Aluminum Non-stick Cookware Is Cookware Is N$45, and At This Selling Price, The Demand Post Is Expected To Be 125 000 Post. Information From The Marketing Division At Tcc Suggests That For Every N$3 Increased In Selling Price, The Customers Demand Would Reduce 10 000 Aluminium Nonstick Cookware And That for Every N$3 Increased In The Selling Price The Customer Demand Would Increased By 10 000 Post.
An Additional Cost Of Producing The Product In Relation To Its Output Is As Follows:
ANNUAL OUTPUTS 115 000 140 000 155 000
OVERHEADS COST N$ 75 000 750 000 750 000
ADMINISTRATIVE COST ARE AS FOLLOW
SELLING PRICE N$ 425 000
ADVERTISING COST N$ 360 000
Required
A. Derive An Equation For The Demand Function That Is The Price As A Function Of Quantity Demanded.note If P= A-bx Then Mr= A-2bx 4marks
B. Find the quantity that maximizes profit 5MARKS
C. Calculate the optimum price 2 MARKS
D. Determine the maximum profit 9 MARKS
E. Identify any 5 pricing strategies 5MARKS
1 Answer