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The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2,625 for the production setup. The variable cost is $55 per pair, and each pair sells for $80. (a) Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost (C) of producing x pairs of shoes. C =        (b) Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. P =        (c) How large must the shoe order be before O'Neill will break even? x =

The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2,625 for the production setup. The variable cost is $55 per pair, and each pair sells for $80. (a) Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost (C) of producing x pairs of shoes. C =        (b) Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. P =        (c) How large must the shoe order be before O'Neill will break even? x =

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2,625 for the production setup. The variable cost is $55 per pair, and each pair sells for $80.
(a)
Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost (C) of producing x pairs of shoes.
C = 
 
 
 
(b)
Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes.
P = 
 
 
 
(c)
How large must the shoe order be before O'Neill will break even?
x = 
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