Your shipping company expanded their shipping capacity by 200 trucks. The company subsequently located 100 of the purchased trucks at each of the shipping warehouses in Detroit and Atlanta. Your company makes weekly shipments from each of these warehouses to terminals in New York City, Boston, Washington DC, Pittsburgh, and Philadelphia. Each truck can make one shipment per week. The terminal manager at New York City can accommodate 55 additional trucks. The terminal manager at Boston can accommodate 45 additional trucks. The terminal manager at Washington DC can accommodate 40 additional trucks. Pittsburgh can accommodate 50 additional trucks. The terminal manager at Philadelphia can accommodate 45 additional trucks. The company makes the following profits per truckload shipment from each warehouse to each terminal.

A manufacturer sells a particular product in both Brazil and the U.S.  In Brazil, the manufacturer has been selling 4,900 units per year of the product at a price of $200 and a contribution margin of 25 percent. For sales of this product in Brazil, calculate the breakeven sales level for a $20 price increase.  Show your work. In the U.S., the manufacturer’s price for this product is $400 and the contribution margin is 50 percent.  The manufacturer knows that, because of gray market commerce, every one-unit change of sales of this product in Brazil leads to a 0.15-unit sales change in the opposite direction in the U.S.  Given this information, recalculate the breakeven sales level in Brazil described in Part a. Show your work. Using the course material, describe the concept of a price corridor.  Then explain how the difference between the breakeven you calculated in Part (b) and the one you calculated in Part (a) is helpful for applying the price-corridor concept in this situation.

A company manufactures two types of leaf blowers: an electric Turbo model and a gas-powered Tornado model. The company's production plan calls for the production of at least 690 blowers per month. It costs $74 to produce each Turbo model and $111 to manufacture each Tornado model, and the company has at most $63,640 per month to use for production. Find the number of units that should be produced to maximize profit for the company, and the maximum profit, if the profit on each Turbo model is $35 and the profit on each Tornado model is $40. The maximum value is $ by producing integers or decimals.) units of the Turbo model and units of the Tornado model. (Type

Jenny Tanaka wants to buy a new car, and the annual gasoline expense is a major consideration. Her present car gets 25 miles per gallon (mpg), and she is considering purchasing a new car that gets 40 mpg. Jenny now drives about 12,000 miles per year and pays $3.25 per gallon of gasoline. She therefore calculates an annual gasoline consumption of 480 gallons for her 25 mpg car (12,000 miles/25 mpg) compared to 300 gallons consumed per year for the 40 mpg car (12,000 miles/40 mpg). Since driving the higher- mileage car would use 180 gallons less per year, Jenny estimates the new car will save her $585 in gasoline expense per year (180 gallons 3 $3.25 per gallon). Suppose Jenny buys the 40 mpg car. According to economic theory, Jenny's actual annual savings on gasoline will be 7 1 C 1 U C VI 10 V K W S TACAZEC 10 GUNS TOMBER 2 than her initial estimate of $585.