Catawba Case Study

Catawba Case Study

Order Description

summarize the case for short paragraph and please answer this question using table to calculate the numbers with all details. (NOTE THE ANSWER IS ALREADY THERE BUT SHOW THE WORK HOW TO CALCULATE IT )

Q-2. If the general manger decides to manufacture ten light compressors each week and to sell them at a price of $8,000, how much better or worse off financially would Catawba be? What would be the opportunity cost of this decision? Tip: Use marginal analysis and assume the costs of a regular weekday (Answer: marginal benefit = $51,500). What would be the net weekly marginal benefit after considering the opportunity costs? (Answer = $22,750).