Question
Hogwarts has just contacted Quality Quidditch to place a special order. This order is outside of normal business and will either be accepted entirely or
Hogwarts has just contacted Quality Quidditch to place a special order. This order is outside of normal business and will either be accepted entirely or rejected entirely. Hogwarts wishes to purchase 5,000 brooms. In order to fulfil this order, Quality Quidditch will have to pay 10,000 in additional fixed costs. Accepting this special order will have no long-term effect on Quality Quidditch's pricing. Quality Quidditch has a maximum capacity of 50,000 brooms. What is the minimum price per broom that Quality Quidditch should charge Hogwarts ?
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The Quality Quidditch company manufactures witch's brooms. Currently, the company manufactures and sells 45,000 brooms per month. The company's monthly income statement is as follows
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