Question

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. per-unit variable cost would be $3. if her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she expects to be 80 percent efficient in her use of this land, how many rosebushes does rose plan to grow each year on this land?

Answer 1

The answer is "1600".


we can calculate this by multiplying the effective capacity by the percent.
here effective capacity = 2000
percent efficient in her use of this land = 80% = 80/100 = 0.8
Now multiply 2000 with 0.8
=2000 x 0.8
= 1600