A Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and variable costs data, combined fixed costs equal $540,000.
Infinity A Pro Max Infinity A Pro Infinity A Infinity A Lite
Selling Price (in dollars) 500 400 340 220
Material Cost /unit (in dollars) 220 190 150 90
Labor Cost/unit (in dollars) 90 65 65 50
a) Develop a joint total revenue function for sales of the four different models.
b) Develop an annual total cost function for manufacturing the four models.
c) Develop the profit function for sales of the four models.
d) Calculate the annual profit if the firm sells 9000, 12000, 45000 and 22000 units, respectively, of the four models?