Answer to Question #25310 in Quantitative Methods for kenny syabunkululu
the extra facilities necessary to meet the requirements of contract C1 would cost $50,000. these facilities would, however, provide sufficient capacity for the requirements of contract C2 to be met also. in addition the production costs would be $18,000. the corresponding production costs for contract C2 would be $10,000
if a tender is made for contract C2 only, then the necessary extra facilities can be provided at a cost of $24,000. the production costs in this case would be $12,000
with the aid of a descion tree prepare a report advising the company
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