A domestic shoe company distributes running shoes and tennis shoes for $95 per pair to it domestic shoe retailers. The marginal cost of producing a pair of running shoes is $60 and the marginal cost of producing a pair of tennis shoes is $45. Ignore any potential issues of bundling the two types of shoes together as part of the sale and any competitive effects that international sales might have on current domestic sales. A Chinese retailer offers to purchase running shoes for $55 per pair and tennis shoes for $55 per pair, for distribution in China. Suppose the domestic shoe company has a maximum capacity of 50,000 pairs of running shoes and 50,000 pairs of tennis shoes in total, of which 45,000 pairs of running shoes and 45,000 pairs of tennis shoes can be sold to domestic retailers. How many pairs of running shoes would you allocate to the domestic market if the Chinese retailer offers to purchase 15,000 of running shoes? a. O pairs b. 45,000 pairs c. 5,000 pairs d. 15,000 pairs

A domestic shoe company distributes running shoes and tennis shoes for $95 per pair to it domestic shoe retailers. The marginal cost of producing a pair of running shoes is $60 and the marginal cost of producing a pair of tennis shoes is $45. Ignore any potential issues of bundling the two types of shoes together as part of the sale and any competitive effects that international sales might have on current domestic sales. A Chinese retailer offers to purchase running shoes for $55 per pair and tennis shoes for $55 per pair, for distribution in China. Suppose the domestic shoe company has a maximum capacity of 50,000 pairs of running shoes and 50,000 pairs of tennis shoes in total, of which 45,000 pairs of running shoes and 45,000 pairs of tennis shoes can be sold to domestic retailers. How many pairs of running shoes would you allocate to the domestic market if the Chinese retailer offers to purchase 15,000 of running shoes? a. O pairs b. 45,000 pairs c. 5,000 pairs d. 15,000 pairs

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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