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Sunk -versus- Variable Costs

Sunk -versus- Variable Costs . Only the variable costs are relevant in optimization models. Sunk costs do not need to be added as a separate term in the objective. The problem can be optimized without it and the sunk cost subtracted later.

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275 views • 7 slides

Purchasing Recommendations

Purchasing Recommendations. Supply of almonds and walnuts will be depleted. Each extra pound of almond is worth $8.50 profit to TJ and each extra pound of walnut is worth $1.50 profit.

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90 views • 3 slides

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Sunk -versus- Variable Costs

Purchasing Recommendations