Question
distinguish between the two ranges? Some content you may need is: Super Sashimi produces large, standardised, sushi plates for corporate functions and parties. The plates
distinguish between the two ranges?
Some content you may need is:
Super Sashimi produces large, standardised, sushi plates for corporate functions and parties. The plates sell for $40. Orders for sushi plates are placed prior to the upcoming month. Monthly production data and total costs for the business are outlined below.
Super Sashimi can produce up to 2800 plates a month with their regular facilities. However, they can expand capacity for an upcoming month to up to 4000 plates. For this to be done, they incur an additional rent payment of $10,000, as well as additional direct labour costs.
So, if the business increases capacity to 4000 plates, how do I determine the relevant ranges and which numbers to use in each range?
Month Production Total Costs Jan 1250 42,500 Feb 1600 48,800 Mar 2900 82,600 Apr 1850 53,300 May 3500 95,800 Jun 1300 41,300 Jul 2750 69,500 Aug 3000 96,000 Sep 3350 91,000 Oct 1650 49,700 Nov 2300 61,400 Dec 3100 93,500
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