Break-even analysis. The publisher in Problem 59 finds that rising prices for paper increase the variable costs to $2 .10 per book. (A) Discuss possible strategies the company might use to deal with this increase in costs. (B) If the company continues to sell the books for $11 , how many books must they sell now to make a profit? (C) If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?
Break-even analysis. The publisher in Problem 59 finds that rising prices for paper increase the variable costs to $2 .10 per book. (A) Discuss possible strategies the company might use to deal with this increase in costs. (B) If the company continues to sell the books for $11 , how many books must they sell now to make a profit? (C) If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?
Solution Summary: The author explains how the company might increase the selling price per book to deal with the increase in variable costs.
Suppose we have a linear program in standard equation form
maximize cx
subject to Ax = b,
x > 0.
and suppose u, v, and w are all optimal solutions to this linear program.
(a) Prove that z = u+v+w is an optimal solution.
(b) If you try to adapt your proof from part (a) to prove that that u+v+w
is an optimal solution, say exactly which part(s) of the proof go wrong.
(c) If you try to adapt your proof from part (a) to prove that u+v-w is an
optimal solution, say exactly which part(s) of the proof go wrong.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.
Solve ANY Optimization Problem in 5 Steps w/ Examples. What are they and How do you solve them?; Author: Ace Tutors;https://www.youtube.com/watch?v=BfOSKc_sncg;License: Standard YouTube License, CC-BY
Types of solution in LPP|Basic|Multiple solution|Unbounded|Infeasible|GTU|Special case of LP problem; Author: Mechanical Engineering Management;https://www.youtube.com/watch?v=F-D2WICq8Sk;License: Standard YouTube License, CC-BY