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What would be the maximum purchase price acceptable to the Minnetonka Corporation for the bindings? Support your answer with an appropriate explanation.
? Perfectly competitive companies maximize profits by producing the quantity where the cost is less than or equal to the revenue generated. In this case, each pair costs $69 to buy. The optimal cost for the bindings should not exceed the price per pair ($80.00). Therefore, the maximum allowable price for the bindings should not exceed $80.00 (sale price) - $69.00 (bought manufacturing) = $11.00
3. Instead of sales of 10,000 pair of skis, revised estimates show sales volume at 12,500 pair...
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