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Sackville Plastics is considering adding a new product to its product line.The Oyster is a hard shell case for tablet computers, designed for those using
- Sackville Plastics is considering adding a new product to its product line.The Oyster is a hard shell case for tablet computers, designed for those using tablets in more demanding environments.Producing this product will require the acquisition of a set of molds that can be used with injection molding equipment that SP already has.The molds will cost $90,000.Materials and labour are estimated to average $5.60 per unit, regardless of size.The Oyster will sell to distributors for an estimated $9.00.
- Construct revenue, cost and profit functions for the Oyster.
Revenue = R = 9x
Cost = C = 90,000 + 5.6x
Profit = P = Revenue - Cost = 3.4x - 90,000
where did the number 3.4 come from
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