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1. 2. The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. The company has only
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The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. The company has only 2,600 machine-hours available for production. Assuming the company has made optimal use of its 2,600 machine-hours, what is the maximum amount per hour the company should be willing to pay to rent additional machine-hours of capacity? Division S of Kracker Company makes a part that it sells to other companies. Data on that part appear below: Division S. price of $28 or less and Division B continues to buy from the outside supplier, the company as a whole will
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