Levy produces three types of denim jeans: black, blue, and red. The company has a...
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Levy produces three types of denim jeans: black, blue, and red. The company has a color dyeing machine that is currently being used at of its capacity. All other machines have excess capacity. The color dyeing machine has a maximum capacity of minutes per month. Data concerning the three types of jeans appear below. Product Black Blue Red Selling price per unit $ $ $ Variable expenses per unit Monthly demand # of units Machine time required minute minutes minutes Now a third party offers to rent another dyeing machine exactly the same as the one Levy currently has to Levy at the price of $ per minute. The rental term states that Levy can rent the machine for up to minutes a month Levy pays $ times the number of minutes it uses the machine How many minutes per month should Levy rent the dyeing machine for from the third party?
Levy produces three types of denim jeans: black, blue, and red. The company has a color dyeing machine that is currently being used at of its capacity. All other machines have excess capacity. The color dyeing machine has a maximum capacity of minutes per month. Data concerning the three types of jeans appear below.
Product
Black
Blue
Red
Selling price per unit
$
$
$
Variable expenses per unit
Monthly demand # of units
Machine time required
minute
minutes
minutes
Now a third party offers to rent another dyeing machine exactly the same as the one Levy currently has to Levy at the price of $ per minute. The rental term states that Levy can rent the machine for up to minutes a month Levy pays $ times the number of minutes it uses the machine
How many minutes per month should Levy rent the dyeing machine for from the third party?
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