[romil123456]

Chopper Ltd, a manufacturer of lawn mowers, is unsure of whether to purchase an automated metal cutting machine to speed up its building of the bodywork for its lawn mowers. The machine would cost £250,000, which would have to be borrowed at an overdraft rate of 8% per annum, but would reduce variable costs from the current level of £37.00 per lawn mower to £34.50 per lawn mower. At present Chopper Ltd has fixed costs of £500,000 per annum.
A consultant has been commissioned by Chopper Ltd to help establish its demand function, and it has been found that demand increases at a constant rate of 1,560 lawn mowers for every £1 decrease in price and that there will be no sales at a price of £72.00.
Chopper Ltd seeks to maximise profits. Ignore taxation.
If purchased, the metal cutting machine would be acquired on the first day of Chopper's accounting year. Since the machine will last for many years its depreciation should be ignored.
Requirement:
A) If the company does not purchase the metal cutting machine, calculate the selling price required to maximise profit, the quantity sold, and the corresponding total revenue and profit at that selling price, using differential calculus techniques.
10 per cent
(Note: an answer calculated by tabulation will not lose any marks for its approach.)
B) If Chopper Ltd were to purchase the metal cutting machine, what would be the new optimum level of sales, and the total revenue and profit at that price?
10 per cent
C) Recommend whether Chopper Ltd should purchase the metal cutter. Briefly suggest additional areas for the management to concentrate on improving.
5 per cent

[ArcSine]

Nice copy-n-paste job on the question, right down to the percentage credits for each part. Hence you're part way there. Now (per the homework-help rules you read earlier, surely) just show your work and your efforts at the solution, and help will be forthcoming.