They will sell a range of chips from that factory, and they need to decide how much capacity to dedicate to each chip. Imagine that they will sell two chips. Phoenix is a completely new architecture designed with 7nm technology in mind, whereas RedDragon is te same architecture as their 10nm BlueDragon. Imagine that RedDragon will make a profit of $15 per defect-free chip. Phoenix will make a profit of $30 per defect-free chip. Each wafer has a 450 nm diameter.

a) How much profit do you make on each wafer of Phoenix chips?

b) How much profit do you make on each wafer of RedDragon chips?

c) If your demand is 50,000 RedDragon chips per month, and your facility can fabricate 70 wafers a month, how many wafer should you make of each chip?