Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- Number of Pickers (per Hour) 0 1 2 3 4 5 6 7 8 9 Total Strawberry Output (Boxes per Hour) 0 5 10 14 17 19 20 20 18 15 Price of Total Strawberries Revenue (per Box) (per Hour) $2 2 2 2 2 2 2 2 2 2 $0 10 20 28 34 38 40 40 36 30 Marginal Revenue New Price of Product Strawberries $10 10 8 6 + NO + -4 -6 $4 4 4 4 4 4 4 4 4 4 New Total Revenue (per Hour) How many pickers would be hired at $12 an hour after the price change? picker(s) New Marginal Revenue Productarrow_forwardYou are the operations manager for Louisiana Oysters, Inc. The company has designed new "Oyster shucking" knife that is expected to reduce risk of injury to the user. Your firm plans to begin production of these knives soon. Either of two machines, A or B could be used for in-house production. Machine A would have a fixed cost of $6000 and a variable cost of $5 per knife produced, and machine B would have a fixed cost of $9600 but a variable cost of $3 per knife. Each knife is expected to sell for $15. Determine the Range of annual “Volume of Business“[Q], for which each of the two alternative machines would be optimal i.e. best. Hint: Compute various break-even points for your evaluationarrow_forward63- The biggest difference among football teams in terms of revenue-generating capacity is A- luxury box revenue B- local television in the city C- the cost of living in the city D- memorabilia salesarrow_forward
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