It costs a company 130 in variable costs to produce a


It costs a company $130 in variable costs to produce a refrigerator plus a fixed cost of $12,000 if any refrigerator is produced. If the company spends x dollars in advertising, then it can sell x^1/3 refrigerators at $700 each.

a) How many washing machines does the company have to produce to maximize its profit?

b) What is the profit?

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Operation Management: It costs a company 130 in variable costs to produce a
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