Decision Analysis A product may be made by Machine I or Machine II....

  1. Home
  2. Homework Library
  3. Mathematics
  4. Pre-Calculus
  5. Decision Analysis A product may be made by Machine I or Machine II....

QuestionQuestion

Decision Analysis A product may be made by Machine I or Machine II. The manufacturer estimates that the monthly fixed costs of using Machine I are $18,000, whereas the monthly fixed costs of using Machine II are $15,000. The variable costs of manufacturing 1unit of the product using Machine I and Machine II are $15 and $20 respectively. The product sells for $50 each.

a. Fine the cost functions associated with using each machine

c. Which machine should management choose in order to maximize their profit if the projected sales are 450 units? 550 units? 650 units?

d. What is the profit for each case in part (c)?

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

(a) Suppose Machine I and Machine II produce x and y respectively.
For Machine I

Cost Price = 15x + 18000 ...

By purchasing this solution you'll be able to access the following files:
Solution.txt.

$2.75
for this solution

or FREE if you
register a new account!

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Pre-Calculus Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats