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Scenario: You are a financial planner that works frequently with small businesses. A new brewery is opening in town and the two owners are
Scenario: You are a financial planner that works frequently with small businesses. A new brewery is opening in town and the two owners are seeking your advice on their financial decisions. Each owner has drafted a potential plan for how they might allocate their money. Let x represent the number of barrels. Annual Insurance Annual Space Rental Anticipated Revenue Model for First Year (in dollars) 800x-0.1x2 Production Cost Per Barrel (materials, labor, etc.) Owner #1 Owner #2 Flat rate of $1,090 Flat rate of $1,250 Flat rate of $184,500 Flat rate of $260,000 $475 $415 945x-0.2x2 Ultimately, the brewery owners share the same goal of wanting to make as much money as possible in their first year. Which owner's plan will yield the higher potential maximum profit in their first year? What is that maximum profit? How many barrels will need to be produced and sold to achieve that maximum profit?
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