alt midterm 1

# Alt midterm 1 - IE 343 Fall 2009 Name Student ID IE 343 Midterm 1 Make-up exam Closed Book Closed Notes Show all of your work Your work and answers

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Name: _______________________ Student ID: ___________________ 2 1. A computer chip manufacturing firm leases a building for \$95,000 per year to manufacture the chips. The firm also pays for the machinery in the building in installments of \$25,000 per year. Each chip costs \$20 in labor and \$15 in parts. The price of the chip in the market is \$50. a) What is the breakeven level of the firm? 5 points b) If the firm decides to lower the price of the chip to \$40, how many chips per year must the firm sell to earn a profit of \$50,000 per year? 6 points
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## This note was uploaded on 02/07/2012 for the course IE 343 taught by Professor Vincent,g during the Spring '08 term at Purdue University-West Lafayette.

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Alt midterm 1 - IE 343 Fall 2009 Name Student ID IE 343 Midterm 1 Make-up exam Closed Book Closed Notes Show all of your work Your work and answers

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