Question
PLEASE HELP I WILL THUMBS UP Company produces three products with the following information: The company has a limit of 14,300 machine-hours available per month
PLEASE HELP I WILL THUMBS UP
Company produces three products with the following information:
The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $37,000.
The demand for each of the products is 2,500 units per month.
The company's goal is to maximize its profitability.
Suppose the company can rent a machine that will provide an additional 1,390 machine-hours per month.
QUESTION: What is the maximum monthly rent the company should be willing to pay for this machine (assuming they've made optimal use of their own machine)?
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