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D G H Problem 1. (10 points) 2 3 4 Al bey has a small manufacturing firm at the Organize Sanayi One of his customers
D G H Problem 1. (10 points) 2 3 4 Al bey has a small manufacturing firm at the Organize Sanayi One of his customers asks him if he could make a new product, called zamaringo, for them Ali bey thinks, he needs to buy an zamadingo machine for production He could buy the machine from Germany, Expo Co. Expo Co. sells the machine for 10,000. The current exchange 6 7 8 rate is 1-6.30 TL. The machine uses advanced technology and its variable cost of producing zamaringo is not inear, but it is a function of yearly production If the yearly production is Q units, then the per unit variable cost is 8- LOG(Q) TL. Note that the variable cost is in T., but the foved cost is in 's 9 10 The market price of zamazingo is 10 TL 11 important Note: The Excel function for Log is also LOGIX). Since LOG(0) is undefined, make sure that in your solution table starting Q value must be at least 1 or more! 12 13 (pt) a) What is the break-even quantity for this new product line, if Ali bey buys the machine from Expo Co.? 14 15 N 0 16(4 pt) b) it Alibey thinks that he could sell only 5000 units next year, what would be the max C/TL, exchange rate that the investment is still viable (that is the break-even quantity will be 5000 units)? 17 18 19 SOLUTION 20 21 22
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