1. You have 3 machines that can make each make 10 blankets per hour, and you run them for 8 hours per day, 5 days per week. Weekly customer demand is 1963 blankets. What is the weekly capacity for a single machine? How many additional machines would you need to be able to meet the customer demand for blankets?

2.The local office supply store sells 600 reams of printer paper each year. It costs them $3 to order more paper and it costs $1 per ream to store the paper. The store operates 300 days per year, and an order takes 3 days to arrive. How many reams of paper should be in each order (i.e. the EOQ)? What is the REORDER POINT at which they should place new orders?

3. A manufacturer must choose between locating in Atlanta (fixed cost of $60,000 / year and variable cost of $25per unit) or Denver (fixed cost of $80,000 / year and variable cost of $20 per unit). If the manufacturer plans to produce 5,000 units, where should they locate the facility? What is the point of indifference between the two locations (i.e., where both facilities are equal in cost)?

4. The Career Institute is considering adding a new program in cooking. To offer such a program would cost a combined $100,000 in equipment costs and additional salaries (both of these are fixed costs). For every student enrolled they incur a materials cost of $300 (this is variable). They expect at least 200 enrollments in the program. To assure they at least break even at 200 enrollments, what is the minimum annual tuition they can charge in the cooking programs?