Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 18 Jan 2018 My Price 8.00

Digital Convert

Digital Convert

Digital Convert (DC) is a three-year-old start-up company with most of its capital coming from banks and personal investments by the founders. DC manufactures a high-resolution scanner (MXP35) for professional photographers that scans 35-mm negative films and converts them to 30-megapixel digital images. The MXP35 is sold to wholesalers who then sell them to high-end professional photography stores. At the heart of the MXP35 is a photoelectric light sensor that converts light into digital pixels. DC currently produces the MXP35 for $480 (variable cost) per unit and incurs virtually no fixed manufacturing costs. All of its equipment is leased, and the leases are structured whereby DC only pays for the actual units produced. DC operates out of a building that is provided free by New York State for entrepreneurial start-ups. New York State also pays utilities, taxes, insurance, and administrative costs. DC does have fixed financing costs to service its existing loans, and these financing costs consume most of its profits from sales of the MXP35. DC faces the following monthly demand schedule for the MXP35 (where price is the wholesale price DC receives)

(The equation of the demand curve for the above table is: P = $2,000 – 38Q). In other words, if DC wants to sell 20 MXP35s per month, it would charge a wholesale price of $1,240 per unit.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Jan 2018 12:01 AM My Price 8.00

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