Management of the Toys R4US Company need to decide whether to introduce novelty toy to Christmas. Total cost required to produce is $50,000 plus $15 per toy produced. The Company would receive revenue of 35.00 for each toy.
A. Assuming every unit is sold, write expression for profit in terms and then find break-even point that number must exceed to make it worthwhile.
B. Now assumes that the number that can be sold might be less than number produced. Write expression for the profit in terms of these two numbers.
c. Formulate spreadsheet that will give profit in part b for any value of two numbers.
d. Write a mathematical expression for the constraint that the number produced should not exceed the number that can be sold.