The firm "talbots & co." faces the following cost function

c(x) = 11.5x2 + 70

where c is the total production cost and x is the quantity produced.

the quantity they can sell depends on the price they charge: the lower the price, the more they will sell. equivalently, the price they can charge depends on the quantity they want to sell, giving rise to the following relation between price and quantity

p(x) = 1,000 - x

where p is the price that "talbots and co." charges for its product.

answer the following questions about this firm.

what is the profit-maximizing level of output for this firm?

what is the maximum profit that this firm can make?

Ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $860. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 320 units sold 285 units in ending inventory 35 variable costs per unit: direct materials $ 135 direct labor $ 355 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 64,000 fixed selling and administrative $ 27,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 245,100 cost of goods sold 205,200 gross margin 39,900 selling and administrative expense 31,275 net operating income $ 8,625 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing. what is the amount of the difference in net operating income between the two costing methods?