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Levy produces three types of denim jeans: black, blue, and red. The company has a color dyeing machine that is currently being used at 1
Levy produces three types of denim jeans: black, blue, and red. The company has a color dyeing machine that is currently being used at of its capacity. All other machines have excess capacity. The color dyeing machine has a maximum capacity of minutes per month. Data concerning the three types of jeans appear below.
Product
Black
Blue
Red
Selling price per unit
$
$
$
Variable expenses per unit
Monthly demand # of units
Machine time required
minute
minutes
minutes
Now a third party offers to rent another dyeing machine exactly the same as the one Levy currently has to Levy at the price of $ per minute. The rental term states that Levy can rent the machine for up to minutes a month Levy pays $ times the number of minutes it uses the machine
How many minutes per month should Levy rent the dyeing machine for from the third party?
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