Sheva owns a coffee shop and wants to start offering bagels as wel. She is decid
ID: 3353591 • Letter: S
Question
Sheva owns a coffee shop and wants to start offering bagels as wel. She is deciding whether she should make the bagels herselfor buy them from a supplier. She has determined that her cost to make the bagels will involve an $86 fixed cost and $0.45 per bagel. To contract with an outside supplier (buy) would require a $1 what quantity of bagels is it cheaper to make the bagels herself? 65 fixed cost and cost $0.23 per bagel. For Hint: Write the costs to make and buy as two linear equations (the slope and y-intercept of each is given in the question above x. Finally, plug in this value of x into both linear equations to see for which option it would be cheaper to make the bagels he if she makes fewer than 581 bagels if she makes fewer than 359 bagels if she makes more than 359 bagels if she makes fewer than 265 bagels if she makes more than 100 bagelsExplanation / Answer
here total cost to produce x bagel =86+0.45x
cost to outsource x bagel =165+0.23x
hence for production cost to be cheaper:
86+0.45x <165+0.23x
0.22x <79
x <79/0.22
x<359
if she makes fewer than 359 bagels
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