Question
Schmaltz, Ltd. produces a variety of specialty beverages. One of its products is made in a separate facility for which monthly rent, administrative costs, and
Schmaltz, Ltd. produces a variety of specialty beverages. One of its products is made in a separate facility for which monthly rent, administrative costs, and equipment leasing is $80,000. The facility has a monthly capacity of 50,000 cases of the specialty beverage. Eight workers handle production and shipping. Each receives salary and fringe benefits of $2,500 per month. Packaging and distribution costs are $0.30 per case, and ingredients cost $1.10 per case. The product is sold for $5.89 a case. Determine the following:
(a) Construct Cost (C), Revenue (R), and Profit (P) functions for Schmaltz in terms of x, the number of cases produced
(b) Sketch a graph of Schmaltzs cost, revenue, and profit functions, and identify the break even point
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