a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost of producing x pairs of shoes. b. Let P indicate the total profit. Develop a mathematical model for the total profit real- ized from an order for x pairs of shoes. c. How large must the shoe order be before O'Neill will break even?
a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost of producing x pairs of shoes. b. Let P indicate the total profit. Develop a mathematical model for the total profit real- ized from an order for x pairs of shoes. c. How large must the shoe order be before O'Neill will break even?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:12. The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order
size is large enough to provide a reasonable profit. For each special-style order, the com-
pany incurs a fixed cost of $1000 for the production setup. The variable cost is $30 per
pair, and each pair sells for $40.
a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model
for the total cost of producing x pairs of shoes.
b. Let P indicate the total profit. Develop a mathematical model for the total profit real-
ized from an order for x pairs of shoes.
c. How large must the shoe order be before O'Neill will break even?
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