Question: Taj Bakery wants to increase its capacity by adding a new oven. The bakery is considering two models of oven: Alpha and Beta. The fixed
Taj Bakery wants to increase its capacity by adding a new oven. The bakery is considering two models of oven: Alpha and Beta. The fixed cost for Alpha model is $ and for Beta model $ The variable cost for Alpha oven is $ bread tray it bakes and for Beta, $ per bread tray baked. Regardless of which oven bakes the bread, each tray is sold for $ and the projected market demand is trays. Which model would generate better profit for the bakery?
Question options:
Model Beta
Nither model Alpha or model Beta
Either model Alpha or model Beta
Model Alpha
Both model Alpha or model Beta
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