A plastics firm has received an order from the city recreation department to manufacture 8,000 special Styrofoam
Question:
A plastics firm has received an order from the city recreation department to manufacture 8,000 special Styrofoam kickboards for its summer swimming program. The firm owns 10 machines, each of which can produce 30 kickboards an hour. The cost of setting up the machines to produce the kickboards is $20 per machine. Once the machines have been set up, the operation is fully automated and can be overseen by a single production supervisor earning $15 per hour.
a. How many of the machines should be used to minimize the cost of production?
b. How much will the supervisor earn during the production run if the optimal number of machines is used?
c. How much will it cost to set up the optimal number of machines?
Step by Step Answer:
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price