Ari's Cat Princess produces a line of luxury cat treats designed to appeal to elderly cats They are sold to pet supply stores in cases The demand for her treats is 50 cases per day The capacity for producing the product is 90 cases per day Setup costs are $120. The treats sell for $20.00 per case and the interest charge rate is 35% The firm operates 250 days a year How many days are botroen each production run? O 18 days O 22 days O 16 days O 20 days

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Aris Cat Princess produces a line of luxury cat treats designed to appeal to elderly cats They are sold to pet supply stores in
cases The demand for her treats is 50 cases per day The capacity for producing the product is 90 cases per day Setup costs are
$120. The treats sell for $20.00 per case and the interest charge rate is 35%. The firm operates 250 days a year.
How many days are between each production run?
O 18 days
O 22 days
O 16 days
O 20 days
Transcribed Image Text:Aris Cat Princess produces a line of luxury cat treats designed to appeal to elderly cats They are sold to pet supply stores in cases The demand for her treats is 50 cases per day The capacity for producing the product is 90 cases per day Setup costs are $120. The treats sell for $20.00 per case and the interest charge rate is 35%. The firm operates 250 days a year. How many days are between each production run? O 18 days O 22 days O 16 days O 20 days
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