North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 48,000 units from Southernstar Exploration Company for $68 per unit. North Platt can manufacture the shaft at $38 per unit. Southernstar desires the diameter of the shaft to be 1.294 cm. The diameter of the shaft must not be less than 1.269 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.319 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $58. Shown below are the diameters from a sample of 100 shafts manufactured during a trial run: Number of Number of Number of

North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 48,000 units from Southernstar Exploration Company for $68 per unit. North Platt can manufacture the shaft at $38 per unit. Southernstar desires the diameter of the shaft to be 1.294 cm. The diameter of the shaft must not be less than 1.269 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.319 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $58. Shown below are the diameters from a sample of 100 shafts manufactured during a trial run: Number of Number of Number of

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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