2. In order to produce a new product, a firm must lease equipment at a cost of $31,000 per year. The managers
feel that they can sell 5,250 units per year at a price of $16. What is the highest variable cost that will allow the
firm to at least break even on this project?
3. A firm wishes to maximize its weekly revenue by producing cast-iron products A and B, that require three basic
operations: casting, grinding, and drilling. Available time is 36,000 minutes per week for casting, 2250 minutes
for drilling. Each unit of Product A requires 80 minutes of casting, 25 minutes