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Question 2 . A manufacturing company produces expensive toys. Each toy sells for $ 2 0 0 and costs $ 7 5 . The company

Question 2. A manufacturing company produces expensive toys. Each toy sells for $200 and costs $75. The company incurs a fixed cost of $6,000 per day to lease their machines to manufacture the toys. Depending on the volume of production the company must also hire and schedule enough number of employees to carry out the production. The additional labor costs are $500, $1000 and $2500 per day, when the production volume is 0 to 30 units, 31 to 60 units, and 61 to 90 units per day, respectively. The company forecasts the daily expected demand for its toys to be 75 units.

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