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Accomack Inc. manufactures tool dies, including dies B6 and B7. The plant where the dies are made is experiencing a problem with its inspection department

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Accomack Inc. manufactures tool dies, including dies B6 and B7. The plant where the dies are made is experiencing a problem with its inspection department and can only spend a limited amount of time each week inspecting these dies (the company hopes to fix the problem but is stuck with the constraint for now). Each 6 die requires 10 minutes to inspect, while each B7 die requires 14 minutes for inspection. Currently, Accomack is producing 142 B6 and 103 B7 dies per week. Inspection costs $34 per hour to do. Other costs include $4203 per week in fixed costs, $12 per die in variable costs for B6, and $11 per die in variable costs for B7. Fixed costs are allocated to the dies based on units produced. B6 sells for $25 per die, and B7 sells for $20 per die. Assume that inspection time is fully utilized. Calculate the shadow cost of an hour of inspection time (round to nearest cent, e.g. 33.33). Answer: Briefly explain why it is relevant that inspection time is fully utilized in the prior question. Limit answers to 25 words. Ignore the information in question 1 and now assume the shadow cost is $52 per hour. For B7, assume allocated fixed costs of $1391 and variable costs of $13 per unit. B7 uses 0.13 hours of inspector time per unit and has a demand curve of V = 1000 - 28P. What is the optimal price to charge for B7? The answer must be rounded to cents (eg, 39.25)

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