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
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