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The Oneill 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 company incures a fixed cost of $2,000 for the production set up. The VC is $60 per pair and the sell for $80 per pair.

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 total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes.

c. What is the break even point?

Operation Management, Management Studies

  • Category:- Operation Management
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