The XYZ Manufacturing Company Produces Ball Bearings

question 17

Short Answer

The XYZ manufacturing company produces ball bearings. The annual fixed cost is $20,000 and the variable cost per ball bearing is $3. The price is related to demand according to the following equation: 1000 - 8p.
-What price for the ball bearings will maximize the profit?

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Definitions:

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and taxes.

Inventory Policy

Guidelines that govern how inventory is controlled and managed, including methods for ordering, storing, and using inventory.

Gadgets

Small mechanical or electronic devices or tools, often novel or ingeniously designed, used for specific practical purposes.

Supplier Performance Index

Supplier Performance Index is a quantitative score that measures and evaluates the performance of a supplier based on criteria like quality, delivery, and service.