Problem 16.8
Production cost per unit = 200$
Cost of additional capacity = 25$ per bike
Additional capacity acquired = 5,500
Available Production Capacity = 25,500
Segment Price Demand Profit
Customized $1,112.50 8,875 $8,098,438
Standard $779.17 16,625 $9,628,646
Total 25,500 $17,589,583