Jorge Company had the following transactions during 2017. • Sales of $4,500 on account • Collected $2,000 for services to be per
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Answer:
in order to minimize net cost, the firm needs to remove 2.5 pounds of x (reduction in sulfur) and 1 pound of y ( reduction in lead) each day
Explanation:
Given that;
Subsidiary = 500x + 100y
The Net cost C will be:
For Critical point ; by differentiating with respect to x alone;
For Critical point ; by differentiating with respect to y alone;
For minimum cost = 0
200x - 500 = 0
200x = 500
x = 500/2
x = 5/2
x = 2.5
For minimum cost = 0
100y - 100 = 0
100 y = 100
y = 1
Hence; in order to minimize net cost, the firm needs to remove 2.5 pounds of x (reduction in sulfur) and 1 pound of y ( reduction in lead) each day