Question 1
A local government board hired you to recommend which of the twopossible sites should be chosen for a new recycling facility.Location A is much closer to the city center, and thus the averagehauling distance would only be 2 miles, while Location B beingoutside of the city would result in an average hauling distance of5 miles. Public funds will have to be used to pay for the leasingcost of the site, which would be $50,000 a year for Location A and$10,000 a year for Location B, as well as for the hauling costwhich is $200 per mile for each trip. Assuming 3,000 trips will bemade per year, which location should be chosen based on the overallcost?
Question 2 :
Metal ABC produces sheets of metal. Its fixed cost in year 2019is $1,000,000. The variable cost is $400 per sheet. a. Find thebreak-even quantity assuming the selling price is $500 per sheet.b. Find the price and quantity that will result in maximum profit,assuming the demand function is ? = $10,000 − 6?. How much profitwill be made using the profit-maximizing price and quantityvalues?
