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Problem 1. The Sneakers Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable prot. For each
Problem 1. The Sneakers Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable prot. For each special-style order, the company incurs a xed cost of $2,000 for the production set-up. The variable cost is $60 per pair, and each pair sells for $Bo. a. b. (2.. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost of producing 1: pairs of shoes. Let P indicate the total prot. Develop a mathematical model for the total prot realized from an order of 1: pairs of shoes. How large must the shoe order be before Sneakers will break even? Problem 2. Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications forbusiness. The xed cost of manuscript preparation, textbook design, and production setup is estimated to be $160,000. Variable production and material costs are estimated to be $6 per book. The publisher plans to sell the text to college and university bookstores for $46 each. a b. c. d . What is the breakeven point? What prot or loss can be anticipated with a demand of 3,800 copies? 'Wir a demand of 3,800 copies, what is the minimum price per copy that the publisher must charge to breakeven? If the publisher believes that the price per copy could be increased to $50.95 and not affect the anticipated demand of 3,300 copies, what action would you recommend? What prot or loss can be anticipated? Provide solution for each
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