Welcome on board to one of the nations elite producers of


Welcome on board to one of the nation's elite producers of floor mounted punching bags. I would like you to think about optimal production levels in our two plants to maximize our profits. Our first plant has the following weekly cost structure: C= 20,000 + 0.5Q12 and our second plant has the following weekly cost structure: C2 = 40,000 + 0.25Q22. Furthermore, our sales team has informed me that our weekly demand function takes the following form: Q = 1,000 - 2P. Give me a recommendation on what weekly production levels should be in each plant, and also recommend a price point for us to hit our sales target?

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