Financial Data Daily demand: 1,000 cases Fixed cost: $5,000 per week Variable cost • Weekdays: $7 per case • Sundays: $12 per case Generic aspirin production • Unit price: $10 per case Brand-name aspirin production • Weekly demand: 1,000 cases per week Unit price: $30 per case Find: (1) How to schedule the product mix, and (2) is it worth operating on Sundays?

Financial Data Daily demand: 1,000 cases Fixed cost: $5,000 per week Variable cost • Weekdays: $7 per case • Sundays: $12 per case Generic aspirin production • Unit price: $10 per case Brand-name aspirin production • Weekly demand: 1,000 cases per week Unit price: $30 per case Find: (1) How to schedule the product mix, and (2) is it worth operating on Sundays?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

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Question

Financial Data

Daily demand: 1,000 cases

Fixed cost: $5,000 per week

Variable cost

• Weekdays: $7 per case

• Sundays: $12 per case

Generic aspirin production

• Unit price: $10 per case

Brand-name aspirin production

• Weekly demand: 1,000 cases per week Unit price: $30 per case

Find: (1) How to schedule the product mix, and (2) is it worth operating on Sundays?

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