Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases quilts from a large producer for​$100 each and sells them in her store at a price that does not change with the number of quilts that she sells. Katie is considering vertically integrating by making her own quilts. If the fixed cost of vertically integrating is​$25,000 and she can produce quilts at Homework: Homework 7 (Lecture 6) Save Score: 0 of 1 pt 6 of 10 (8 complete) HW Score: 80%, 8 of 10 pts Text Question 4.2 Ques​$50 per​ quilt, her total cost of producing​ quilts, q, herself is C=25,000+50q. How many quilts does Katie need to sell for vertical integration to be a profitable​ decision? For vertical integration to be​ profitable, Katie must sell at least nothing quilts. ​(Enter your response rounded to the nearest whole​ number.)

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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​Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases quilts from a large producer for ​$100 each and sells them in her store at a price that does not change with the number of quilts that she sells. Katie is considering vertically integrating by making her own quilts. If the fixed cost of vertically integrating is ​$25,000 and she can produce quilts at Homework: Homework 7 (Lecture 6) Save Score: 0 of 1 pt 6 of 10 (8 complete) HW Score: 80%, 8 of 10 pts Text Question 4.2 Ques ​$50 per​ quilt, her total cost of producing​ quilts, q, herself is C=25,000+50q. How many quilts does Katie need to sell for vertical integration to be a profitable​ decision? For vertical integration to be​ profitable, Katie must sell at least nothing quilts. ​(Enter your response rounded to the nearest whole​ number.)
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