Question
Management of Toys R4U Company needs to decide whether to introduce a certain new novelty toy for the upcoming Christmas season, after which it would
Management of Toys R4U Company needs to decide whether to introduce a certain new novelty toy for the upcoming Christmas season, after which it would be discontinued. The total cost required to produce and market this toy would be $500,000 plus $15 per toy produced. The company would receive revenue of $35 for each toy sold.
a. Assuming that every unit of this toy is produced is sold, write an expression for the profit in terms of the number produced and sold. Then find the break even point that this number must exceed to make it worthwhile to introduce this toy.
b.Now assume tha the number that can be sold might be less than the number produced. Write an expression for the profit in terms of these two numbers.
c.Formulate a spreadsheet that will give the profit in part b for any values of the two numbers.
d.Write a mathematical expression for the constraint that the number produced should not exceed the number that can be sold.
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