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How many hats should the company manufacture

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Question - All numbers in this problem are for one year. Texas Hats has fixed costs of $15,000. Its factory has a capacity of 3600 hats. Its variable costs for labor and material are $14 per hat. There are no other costs. Its market research shows that it can sell 2600 hats at a price of $32 per hat. $32 is the starting price. Hat sales increase by 200 hats for every $1 decline from $32. Hat sales decrease by 200 for every $1 increase from $32. Texas Hats is considering setting prices between $8 below or above the starting price in increments of $1. How many hats should the company manufacture? Model this problem using a One-Way Data Table.

Reference no: EM132032356

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