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The O'Neill Shoe Manufacturing Company will produce a special - style shoe if the order size is large enough to provide a reasonable profit. For
The O'Neill Shoe Manufacturing Company will produce a specialstyle shoe if the order size is large enough to provide a reasonable profit. For each specialstyle order, the company incurs a fixed cost of $ for the production setup. The variable cost is $ per pair, and each pair sells for $ How large must the shoe order be before O'Neill will break even? points
a Let indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost of producing shoe repairs.
b Let indicate the total profit. Develop a mathematical model for the total profit realized from an order for pairs of shoes.
c What is the breakeven point?
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