A tennis racquet manufacturer is negotiating a lease on land to build a manufacturing plant.

The price p charged per tennis racquet will be determined by p = $450 - (0.1) d, where d is the

demand quantity. The manufacturer faces variable costs of $25 per tennis racquet. Fixed costs

of manufacturing are currently $25,000, in addition to the value of the lease per month being

negotiated.

(a) For this situation, determine the optimal monthly order volume for this product?

(b) How high can the lease be in order for the firm to make a positive profit?

(c) You are asked to estimate the per unit cost of a new line of tennis racquet. Past

experience has shown that an 80% learning curve applies to the labor required for

producing these items. The time to complete the first item has been estimated to be 1.76

hours. How long will it take to complete the 50th