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Heller Manufacturing has two production facilities that manufacture baseball gloves. Production costs at the two facilities differ because of varying labor rates, local property taxes,
Heller Manufacturing has two production facilities that manufacture baseball gloves. Production costs at the two facilities differ because of varying labor rates, local property taxes, type of equipment, capacity, and so on The Dayton plant has weekly costs that can be expressed as a function of the number of gloves produced
TCDX X X
where X is the weekly production volume in thousands of units and
TCDX
is the cost in thousands of dollars. The Hamilton plant's weekly production costs are given by
TCHY YY
where Y is the weekly production volume in thousands of units and
TCHY
is the cost in thousands of dollars. Heller Manufacturing would like to produce gloves per week at the lowest possible cost.
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