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A computer rework center has the capacity to rework 300 computers per day. The expected number of computers needing to be reworked per day is 225. The center is paid $26 for each computer reworked. The fixed cost of renting the reworking equipment is $250 per day. Work space rents for $150 per day. The cost of material is $18 per computer and labor costs $3 per computer.

Develop a model for total cost.

Develop a model for total profit.

What is the break-even number of computers reworked per day?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92248303

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