Question
The company Confort inc. manufactures two ranges of mattresses since its creation, namely the mattresses foam and spring mattresses. Foam mattresses sell for $ 400
The company Confort inc. manufactures two ranges of mattresses since its creation, namely the mattresses foam and spring mattresses. Foam mattresses sell for $ 400 each while the Innerspring mattresses sell for $ 1,200 each. The respective variable costs are $ 130 and $ 600 each. It is also necessary to count $ 40,000 of indirect annual manufacturing costs for what is foam mattresses. Comfort inc. wishes to expand its facilities by the amount of $ 500,000.
A) How many foam mattresses will she have to sell to cover these new costs?
B) If Confort inc. sold 100 more units of each of its two products, what a profit additional gain?
C) Assuming that Confort inc. drop the manufacture of foam mattresses, how much spring mattresses should be priced to cover these new costs
by selling only 800 units?
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