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Sox Engineering designs and constructs air conditioning andheating (HVAC) systems for hospitals and clinics. Currently thecompany’s staff is overloaded with design work. There is a majordesign project due in
99
weeks. The penalty for completing the design late is
$13 comma 00013,000
per week, since any delay will cause the facility to open laterthan anticipated, and cost the client significant revenue. If thecompany uses its inside engineers to complete the design, it willhave to pay them overtime for all work. Sox has estimated that itwill cost
$10 comma 00010,000
per week (wages and overhead), including late weeks, to havecompany engineers complete the design. Sox is
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