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Witch's Brew Company manufactures and sells three potions that all use gargoyle eyelashes as an ingredient. The high demand for all three of these potions exceeds the supply of gargoyle eyelashes that Witch's Brew is able to buy from its suppliers. Information related to the three potions is provided below:
Each year, Witch's brew is only able to buy 6,000 gargoyles at a cost of $25 per eyelash. Annual fixed costs at Witch's Brew are $45,000.
Assume the company can find an overseas supplier of gargoyle eyelashes. What is the maximum price per unit Witch's Brew would be willing to pay for this additional supply?
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Casso limited has an option to purchase new car for the use from a bank on loan for Rs. 100,000 with 16% interest payable annually and the principal is repayable in full at the end of four years.
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