QMHW4 - willing to pay up to $14.10 an hour. D) The Firm...

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Bryan Cain Quant. Methods. HW4 2/10/08 A) Tinitote- 100 Tubbytote- 35 Toddletote- 90 Profit= $2086.25 Under Binding Constraint- Tubbytote Minimum Production Fabrication Toddletote Maximum Production B) $3.60 C) It should be interested because any chance that it can get addition fabrication time is going to increase the overall profitability of the firm. They should be
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Unformatted text preview: willing to pay up to $14.10 an hour. D) The Firm should not produce Twin Totes because it would create a max profit of $9.38 and decrease profitability by $3.22 per unit produced. (sales price $72.00 Materials $5.75- Labor cost $56.88)- $12.60(3.5hrs of fabrication * $3.60 shadow cost)= -$3.22...
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This note was uploaded on 04/07/2008 for the course BUSQOM 0050 taught by Professor Glowackia during the Spring '08 term at Pittsburgh.

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