Unformatted text preview: should either have a minimum performance of 6 and aesthetic of 4 or vice versa. Assuming that each widget is sold at $9 for a $1 profit the cost to produce will be much less and more can be sold. 16 will be sold with reliability at 6 and convenience at 4 being built at $8 a unit. If it was vice versa (convenience at 6 and reliability at 4) then only 15 would be sold. So to maximize profits there should be a minimum reliability of 6 and convenience of 4. The cost of producing 16 ridgets would be $128....
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- Spring '11
- minimum performance, Ritesh Saini T-Th, Veronica Castro, Ritesh Saini