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Reese Evans, a manufacturer of air filtration equipment, produces two models, the Umidaire and the Depolinaire. Data pertaining to sales price and costs are shown
Reese Evans, a manufacturer of air filtration equipment, produces two models, the Umidaire and the Depolinaire. Data pertaining to sales price and costs are shown in the following table. Reeses firm has already contracted to provide 500 Umidaires and would like to calculate the break-even quantities for both types of units. Formulate the cost-minimizing LP model and solve it.
PRODUCT Umidaire Depolinaire SELLING PRICE PER UNIT (S) 450 700 VARIABLE COST PER UNIT (S) 240 360 FIXED COST (S) 150,000 240,000Step by Step Solution
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