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Suppose that you have 8 hours of reactive capacity every day. You can run 4 hours of overtime every day, which you have to pay
Suppose that you have 8 hours of reactive capacity every day. You can run 4 hours of overtime every day, which you have to pay an extra hourly cost of $1,000 for the overtime. Now instead of running overtime to increase your reactive capacity, you try to pay a marketing intelligence service to obtain accurate demand signals by 10 days earlier. What is the break-even cost for the marketing intelligence service, such that you are indifferent between using the service and running overtime? Group of answer choices $20,000 $40,000 $60,000 $80,000
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