2018//1(b)//Engineering Eco//KU

A large wood products company is negotiating a contract to sell plywood overseas. The
fixed cost that can be allocated to the production of plywood is $800,000 per month. The
variable cost per thousand board feet is $155.50. The price charged will be determined by
p = $600 - (0.05) D per 1,000 board feet.
i. For this situation, determine the optimal monthly sales volume for this product and
calculate the profit (or loss) at the optimal volume.
ii. What is the domain of profitable demand during a month.

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2017//2(b)//Engineering Eco//KU

A loan of $10,000 is to be repaid over a period of eight years. During the first four years, exactly half of the loan principal is to be repaid (along with accumulated compound interest) by a uniform series of payments of A1 dollar per year. The other half of the loan principal is to be repaid over four years, with accumulated interest, by a uniform series of payments of A2 dollar per year, If i=9% per year, what are A1 and A2?

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