A person decides to start trying to make a profit from their knitting hobby. They knit caps
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Question:
a. Create a spreadsheet that would determine how much wool, labor, and dye it would take, and how much profit they would make by producing a given number of sweaters and caps.
b. Use solver to determine the number of caps and sweaters they should make that would maximize their profit. Assume for the time being that they can produce fractional sweaters and caps.
c. The knitter is considering changing the amount they'd charge per cap. How much could their profit per cap increase or decrease by before their optimal strategy would change?
d. The knitter is considering working more hours. How much more would they make per additional hour of labor? How many hours could they add to their schedule before this answer changed?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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