Question: Manufacturing Processes (10 points) Q4. David Smith recently purchased a chain of dry cleaners in western Wisconsin. Although the business is making a modest profit

Manufacturing Processes (10 points) Q4. David

Manufacturing Processes (10 points) Q4. David Smith recently purchased a chain of dry cleaners in western Wisconsin. Although the business is making a modest profit now, David suspects that if he invests in a new press, he could recognize a substantial increase in profits. The new press costs $16.700 to purchase and install and can press 40 shirts an hour (or 320 per day). David estimates that with the new press, it will cost $0.25 to launder and press each shirt. Customer are charged $1.15 per shirt. a. How many shirts will David have to press to pay back this investment (0% interest)? b. So far, David's workload has varied from 62 to 200 shirts a day. How long would it take to break even on the new press at the low-demand estimate? At the high-demand estimate? c. If David cuts his price to $0.99 a shirt, he expects to be able to increase the demand of his customer base to 250 shirts per day. How long would it take to break even at the reduced price of $0.99? Should David cut his price and buy the new

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