Question
Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases quilts from a large producer for $6060 each and
Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases quilts from a large producer for
$6060
each and sells them in her store at a price that does not change with the number of quilts that she sells. Katie is considering vertically integrating by making her own quilts. If the fixed cost of vertically integrating is
$15 comma 00015,000
and she can produce quilts at
$5050
per quilt, her total cost of producing quilts, q, herself is
Cequals=15 comma 00015,000plus+5050q.
How many quilts does Katie need to sell for vertical integration to be a profitable decision?
For vertical integration to be profitable, Katie must sell at least
nothing
quilts.(Enter your response rounded to the nearest whole number.)
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