Referring to the previous problem, if it is optimal for the company to produce sweatshirts, use SolverTable to see how much larger the fixed cost of sweatshirt machinery would have to be before the company would not produce any sweatshirts. However, if the solution to the previous problem calls for no sweatshirts to be produced, use SolverTable to see how much lower the fixed cost of sweatshirt machinery would have to be before the company would start producing sweatshirts.
(Reference Problem 11)
How difficult is it to expand the Great Threads model to accommodate another type of clothing? Answer by assuming that the company can also produce sweatshirts. The rental cost for sweatshirt equipment is $1100; the variable cost per unit and the selling price are $15 and $45, respectively; and each sweatshirt requires one labor hour and 3.5 square yards of cloth.
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