Pack-Em-In Real Estate Is Building a New Housing Development

question 57

Short Answer

Pack-Em-In Real Estate is building a new housing development. The more houses it builds, the less people will be willing to pay, due to the crowding and smaller lot sizes. In fact, if the company builds 50 houses in this particular development, it can sell them for $200,000 each, but if it builds 70 houses, it will be able to get only $180,000 each. What is the largest possible revenue the company can get? $ __________

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Definitions:

Setup For One Run

The preparation and adjustment activities required to switch a production process or machine from making one product or batch to another.

Activity Cost

The financial sum associated with carrying out a specific business task or operation, usually involved in budgeting and accounting.

Activity-based Costing System

An accounting method that assigns costs to products and services based on the activities and resources that go into creating them, providing more precise costing information.

Making Patterns

The process of creating templates or models to be used in manufacturing or craft projects, ensuring consistency and precision in production.