4. The dairy Company makes first class cheese, which it sells at major supermarkets. Thefixed monthly cost of production is P 150,000 and the variable cost per 100 grams ofcheese is P 20. The cheese sells for P 30 per 100 grams; however, the company isconsidering raising the price to P 35 per 100 grams. The company presently producesand sells 1,000 kilograms of cheese per month, but if it raises its price per pound, saleswill decrease to 750 kilograms per month. Should the company raise the price?

Process selection mainly depending the net profit earned by each of the method. Here, we can…

Answered: Should the company raise the price?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section7.3: Pricing Models

Problem 2P

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