Production costs for manufacturing running shoes consist of a fixed overhead (including rent, insurance, machine expenses, and other costs) of $550,000 plus variable costs of $15 per pair of shoes. The company plans to sell the shoes to Amazon for about $55 per pair of shoes. (a) Give the profit function for the shoe manufacturer. Clearly define the variables in your profit function. (b) If Amazon buys 4000 pairs of shoes initially, describe their overall costs, revenue, and profit.
Production costs for manufacturing running shoes consist of a fixed overhead (including rent, insurance, machine expenses, and other costs) of $550,000 plus variable costs of $15 per pair of shoes. The company plans to sell the shoes to Amazon for about $55 per pair of shoes. (a) Give the profit function for the shoe manufacturer. Clearly define the variables in your profit function. (b) If Amazon buys 4000 pairs of shoes initially, describe their overall costs, revenue, and profit.
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 25E: Production Manufacturing DVRs and TVs requires the use of the electronics, assembly, and finishing...
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Production costs for manufacturing running shoes consist of a fixed overhead (including rent, insurance, machine
expenses, and other costs) of $550,000 plus variable costs of $15 per pair of shoes. The company plans to sell the shoes to Amazon for about $55 per pair of shoes.
(a) Give the profit function for the shoe manufacturer. Clearly define the variables in your profit function.
(b) If Amazon buys 4000 pairs of shoes initially, describe their overall costs, revenue, and profit.
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