They will sell a range of chips from that factory, and they need to decide how much capacity to dedicate to each chip. Imagine that they will sell two chips. Phoenix is a completely new architecture designed with 7 nm technology in mind, whereas RedDragon is the same architecture as their 10 nm Blue-

Dragon. Imagine that RedDragon will make a profit of $15 per defect-free chip. Phoenix will make a profit of $30 per defect-free chip. Each wafer has a 450 mm diameter.

a. How much profit do you make on each wafer of Phoenix chips?

b. How much profit do you make on each wafer of RedDragon chips?

c. If your demand is 50,000 RedDragon chips per month and 25,000 Phoenix chips per month, and your facility can fabricate 70 wafers a month, how many wafers should you make of each chip?