Plastic cups are made by forming of raw plastic. The price of plastic is 4.500 OMR per kg and the price of plastic cups is 13 OMR per 1000 cups. Plant requires different machine which cost about 50,000 OMR, but the machines has to be imported, after paying 25% as customs duty. On a graph paper, draw a freehand graph and represent all important parameters. Due to increase in plastic price, the break-even quantity has increased by 10%. Find out the new plastic price?
Plastic cups are made by forming of raw plastic. The price of plastic is 4.500 OMR per kg and the price of plastic cups is 13 OMR per 1000 cups. Plant requires different machine which cost about 50,000 OMR, but the machines has to be imported, after paying 25% as customs duty. On a graph paper, draw a freehand graph and represent all important parameters. Due to increase in plastic price, the break-even quantity has increased by 10%. Find out the new plastic price?
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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Plastic cups are made by forming of raw plastic. The price of plastic is 4.500 OMR per kg and the price of plastic cups is 13 OMR per 1000 cups. Plant requires different machine which cost about 50,000 OMR, but the machines has to be imported, after paying 25% as customs duty.
On a graph paper, draw a freehand graph and represent all important parameters.
Due to increase in plastic price, the break-even quantity has increased by 10%.
Find out the new plastic price?
Transcribed Image Text:Plastic cups are made by forming of raw plastic. The price of plastic is 4.500 OMR
per kg and the price of plastic cups is 13 OMR per 1000 cups. Plant requires differ-
ent machine which cost about 50,000 OMR, but the machines has to be imported,
after paying 25% as customs duty.
On a graph paper, draw a freehand graph and represent all important parameters.
Due to increase in plastic price, the break-even quantity has increased by 10%.
Find out the new plastic price?
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