Answer:
208333 tires can be made with a budget of $ 300000.
Step-by-step explanation:
The total budget (), in monetary units, is the sum of fixed costs (cost of introducing the new line) (), in monetary units, and variable costs (cost of producing tires) (), in monetary units:
(1)
If we know that and , then variable costs are:
And the variable cost can be defined by the following formula:
(2)
Where:
- Production cost of a tire, in monetary units per tire.
- Amount of produced tires, in tires.
If we know that and , then the amount of produced tires:
208333 tires can be made with a budget of $ 300000.