A recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in (table 1). The engineering then talked to the firm's marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 2). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? Table 1 Total cost per hr Casting production per hr $1,000 100 $2,600 200 $3,200 300 $3,900 400 $4,700 500 Table 2 Selling price / casting Casting production per hr $20.00 100 $17.00 200 $16.00 300 $15.00 400 $14.50 500 The answer is Blank 1 per hour
A recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in (table 1). The engineering then talked to the firm's marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 2). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? Table 1 Total cost per hr Casting production per hr $1,000 100 $2,600 200 $3,200 300 $3,900 400 $4,700 500 Table 2 Selling price / casting Casting production per hr $20.00 100 $17.00 200 $16.00 300 $15.00 400 $14.50 500 The answer is Blank 1 per hour
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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Question
![A recent engineering was given the job of determining the best production rate for a new type of casting in a
foundry. After experimenting with many combinations of hourly production rates and total production cost
per hour, he summarized his findings in (table 1). The engineering then talked to the firm's marketing
specialist, who provided estimates of selling price per casting as a function of production output (see table 2).
There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per
year?
Table 1
Total cost per hr
Casting production per hr
$1,000
100
$2,600
200
$3,200
300
$3,900
400
$4,700
500
Table 2
Selling price / casting Casting production per hr
$20.00
100
$17.00
200
$16.00
300
$15.00
400
$14.50
500
The answer is Blank 1 per hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F824c34ba-1bc5-4283-a4a9-40e4ca6dd417%2F0c471d6a-9ae6-46cf-a2f5-acd0d38bc897%2F1apakv6_processed.png&w=3840&q=75)
Transcribed Image Text:A recent engineering was given the job of determining the best production rate for a new type of casting in a
foundry. After experimenting with many combinations of hourly production rates and total production cost
per hour, he summarized his findings in (table 1). The engineering then talked to the firm's marketing
specialist, who provided estimates of selling price per casting as a function of production output (see table 2).
There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per
year?
Table 1
Total cost per hr
Casting production per hr
$1,000
100
$2,600
200
$3,200
300
$3,900
400
$4,700
500
Table 2
Selling price / casting Casting production per hr
$20.00
100
$17.00
200
$16.00
300
$15.00
400
$14.50
500
The answer is Blank 1 per hour
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