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Alpha Inc. that makes two kinds of chips, as detailed below. The capacity of its chip fabrication facility is limited to 1,000 machine hours
Alpha Inc. that makes two kinds of chips, as detailed below. The capacity of its chip fabrication facility is limited to 1,000 machine hours per period. There are no constraints on labor hours. Consider additional information presented in the table below: Market demand limit (in units) Selling Price / Unit ($) Variable cost / Unit ($) Fixed cost / Unit ($) Profit/Unit ($) #LHRS / Unit (hours) #MHRS / Unit (hours) Fixed Costs are allocated to each chip type based on # LHRS. Super Chips Okay Chips 300 600 300 240 160 120 50 40 90 80 1 2 2 1 A prospective customer, RLN Quantum Computers, has approached Bharat Chips, Inc. for 100 Super Chips and has asked for the least price quote. Bharat Chips would not want to be worse off from accepting this special order from RLN Quantum Computers relative to its current profit level before accepting such a special order. What will be the minimum price that Bharat Chips, Inc can quote per unit of Super Chip without reducing its current profits?
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