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3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case in which sales equal 30,000 units.
Profit Maximization. When the marginal costs equal marginal revenues, a firm maximizes its profit. In the example, the total cost of producing three shirts is $18. If each shirt sells for $1, the total profit is $27.Since marginal revenue is $15 and marginal cost is $3, it means the firm can still produce more units to increase profits.n the example, the total cost of producing three shirts is $18. If each shirt sells for $1, the total profit is $27. Since marginal revenue is $15 and marginal cost is $3, it means the firm can still produce more units to increase profits.