Question

Case study: Two premium denim jean factories in Asia have the following costs per month. The first one is a socially responsible factory and the second is a traditional factory of a type still common in Asia. Cost Materials per pair of jeans Wash/dye process per pair Of jeans Labour cost per pair Of jeans Rental of building, utilities, admin costs, programs, etc. Socially responsible factory $12* $ 10 Traditional factory $7 $0.25 $0.50 $5800 * All raw materials that go into making the denim jeans meet the highest ethical and environmental standards. ** The factory uses organic cotton and a water recycling system to reduce the environmental impact and not contaminate local community water supplies. It also uses non-toxic organic vegetable dye to ensure that no harm is done to the workers, rather than the harmful chemical dyes used in traditional jean manufacturing. *** Workers earn a living wage, which is 3 times the average of workers in the industry, allowing them to better support themselves and their families and even to save for the future. **** Fixed costs are higher due to better ventilation, light, space and general facilities in the factory. English language courses and training courses in all components of jean production require more time and every worker is rotated to ensure they are skilled in every component of jean making.

Build a linear systems model
a
b
c
d
e
f
g
Derive a cost function for both factories.
If the jeans are sold to the wholesaler for $30 a pair, determine a revenue function.
Graph the cost functions and the revenue functions of both factories on one set of axes.
What is the break-even point for both factories? Comment on the difference between
the two.
Verify your answer by solving the system algebraically. Show your working.
At what price would the socially responsible factory have to sell a pair of jeans if they
wanted the same break-even point as the traditional factory? Round your answer
appropriately and explain the degree of accuracy.
How much more is this per pair as a percentage of the original price?

Answer 1

Answer:

sorry i study small class than you