Fasharel is an innovative company selling casual, yet fashionable, apparel. It purchases the clothing from a manufacturer
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Question:
Fasharel is an innovative company selling casual, yet fashionable, apparel. It purchases the clothing from
a manufacturer and sells directly to consumers through its website. The dataset Orders.xlsx provides the
order quantities and payments to the manufacturer for all Fasharels orders in of one model of the
jacket.
Assume the manufacturer produces the jackets Fasharel orders in a separate facility no other products
are produced there The production rate of the facility is jackets a year. The cost of initiating a
production batch is $ which includes the cost of turning on all the machines and maintaining the
facility during production. The materials to produce one jacket cost $ to the manufacturer. Both
Fasharel and the manufacturer estimate the opportunity cost of capital at
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