BUS 300 Farmingdale State College Management Worksheet

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The current demand for A is 1000 units per year. The demand is assumed to stay fix.We have limited budget. Lets calculate the profit we may get from producing any ofthese chocolates to decide about best option for the next two years (decide about toproduce A or B?). The discount rate is k=0.1.Hint: assume we have period 0, 1, 2.

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