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You are a manager at The Flying Minotaur-a small firm that manufactures Type X and Type Y batteries. The marketing department has provided you with the following information about the per-unit demand for Type X batteries:
Price
Quantity
$22
0
$20
1
$19
2
$18
3
$17
4
$16
5
$15
6
$14
7
If you dedicated all resources to the production of one good, you can produce up to 10 Type X batteries or 20 Type Y batteries. Type X batteries cost $7.50 to produce. Type Y batteries can be sold for $10 and cost $7 to produce. You must produce at least 6 type Y batteries due to current contract agreements. How many Type X batteries should you produce to profit maximize?
Hint: Costs to produce are variable costs
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