1. Mr. Pangilinan, proprietor of Belle's Pizza Place, allocates Php 9,000 a monthfor advertising in two newspapers, the Inquirer and the Bulletin. The Inquirercharges Php 300 for a certain advertisement, whereas the Bulletin chargesPhp 100 for the same ad. Mr. Pangilinan has specified that the ad is to appearin at least 15 but no more than 30 editions of the Bulletin per month. TheInquirer has a daily circulation of 30, 000, and the Bulletin has a circulationof 10,000. Under these conditions, determine how many ads Mr. Pangilinanshould place in each newspaper in order to reach the largest number of readers.

Advertisement is a form of mass communication aimed at reaching the prospective customers to make…

Answered: 1. Mr. Pangilinan, proprietor of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 36P

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Pricing Decisions at Madison The Madison Company manufactures and retails a certain product. The company wants to determine the price that maximizes its profit from this product. The unit cost of producing and marketing the product is 50. Madison will certainly charge at least 50 for the product to ensure that it makes some profit. However, there is a very competitive market for this product, so that Madisons demand falls sharply when it increases its price. How should the company proceed?2 In the pricing model in Example 7.1 with the constant elasticity demand function, the assumption is that all units demanded are sold. Suppose the company has the capacity to produce only 200 units. If demand is less than capacity, all of demand is sold. If demand is greater than or equal to capacity, only 200 units are sold. Use Solver to find the optimal price and the corresponding profit. Then use SolverTable to see how sensitive these answers are to the production capacity, letting it vary from 170 to 230 in increments of 10. Discuss your findings relative to the original solution in Example 7.1. In other words, what is the effect of capacity on the optimal price and profit?
1. Select the rule which determines the quantity of a rice which a consumer will demand.a) Continue to buy so long as there is no consumer surplus.b) Stop buying rice at the level of demand where the consumer surplus rises above the market price.c) Stop buying rice at the level of demand where the marginal utility falls to the price of rice.d) Continue to buy so long as demand for rice is price elastic. 2. In which of these situations might moral hazard arise?a) Insurance companies fail to calculate the risks of accident correctly.b) A company receives an exemption from pollution control legislation.c) A sports team accepts bribes which affect their performance in a game.d) A group of households makes a collective purchase of flood insurance
Using method 1 (combined depreciation and investment cost) determine the probable cost per hour of owning and operating a caterpillar that uses rubber tires.The equipment is a 185-hp diesel engine and the following conditions apply. Factor delivered price = $ 472,550Sales tax = 6.5% of delivered priceUnloading and assembling = $2,175Salvage value = $ 115,000Useful life = $ 6 yr.Hours used per year = 1,675 hrInterest on investment = 9.5%Maintenance and repair = 65% of straight line depreciationDiesel engine = 185 hpOperating factor = 0.60Fuel cost = $5.45/galCrankcase capacity = 9 galHours between oil changes = 135 hr.Oil cost = $14.25/galTires = $ 62,500Tire life = 4950 hr.Tire repairs = 12% of tire depreciation.
Sun Networks is a large company that operating solely as a Television broadcaster. However, four years ago, it started offering broadband and telephone services to its Television customers. Customers taking up the offer were then recognized in the business as ‘Combo customers’ and they had to take up both the broadband and telephone services together with the Television service. Other customers were still able to subscribe to Television alone but not to broadband and telephone services without the Television service.All contracts to customers of Sun Networks are for a minimum two-month period. The Television box is sold to the customer at the beginning of the contract. However, the broadband and telephone equipment is only rented to them. In the first few years after product bundling was introduced, the company saw a steady increase in profits. Then, Sun Networks saw its revenues and operating profits fall. Consequently, staff bonuses were not paid, and staff became dissatisfied.…
Sun Networks is a large company that operating solely as a Television broadcaster. However, four years ago, it started offering broadband and telephone services to its Television customers. Customers taking up the offer were then recognized in the business as ‘Combo customers’ and they had to take up both the broadband and telephone services together with the Television service. Other customers were still able to subscribe to Television alone but not to broadband and telephone services without the Television service.All contracts to customers of Sun Networks are for a minimum two-month period. The Television box is sold to the customer at the beginning of the contract. However, the broadband and telephone equipment is only rented to them. In the first few years after product bundling was introduced, the company saw a steady increase in profits. Then, Sun Networks saw its revenues and operating profits fall. Consequently, staff bonuses were not paid, and staff became dissatisfied.…
Sun Networks is a large company that operating solely as a Television broadcaster. However, four years ago, it started offering broadband and telephone services to its Television customers. Customers taking up the offer were then recognized in the business as ‘Combo customers’ and they had to take up both the broadband and telephone services together with the Television service. Other customers were still able to subscribe to Television alone but not to broadband and telephone services without the Television service. All contracts to customers of Sun Networks are for a minimum two-month period. The Television box is sold to the customer at the beginning of the contract. However, the broadband and telephone equipment is only rented to them. In the first few years after product bundling was introduced, the company saw a steady increase in profits. Then, Sun Networks saw its revenues and operating profits fall. Consequently, staff bonuses were not paid, and staff became dissatisfied.…
A longtime client, Salim Ali, recently entered into a new venture involving his ownership and operation of a small 20-room motel and café’ located in an area of Al-Qurum-Muscat heavily visited by tourists. He needs your advice. Salim hired a young couple to run the motel and café’ on a day-to-day basis and plans to pay them a m0nthly salary. They will live for free in a small apartment behind the motel office and will be in charge of the daily operations of the motel and café’. The couple will be responsible for hiring and supervising the four or five part-time personnel who will help with cleaning the rooms, cooking, and waiting customers in the café’.etc. the couple will also maintain records of rooms rented, meals serviced, and payments received (which can be in cash, checks, or credit cards). They will make weekly deposits of the business proceeds at the local bank. As the time approaches for the business to open, Salim is concerned that he will have a little control over the…
A longtime client, Salim Ali, recently entered into a new venture involving his ownership and operation of a small 20-room motel and café’ located in an area of Al-Qurum-Muscat heavily visited by tourists. He needs your advice. Salim hired a young couple to run the motel and café’ on a day-to-day basis and plans to pay them a m0nthly salary. They will live for free in a small apartment behind the motel office and will be in charge of the daily operations of the motel and café’. The couple will be responsible for hiring and supervising the four or five part-time personnel who will help with cleaning the rooms, cooking, and waiting customers in the café’.etc. the couple will also maintain records of rooms rented, meals serviced, and payments received (which can be in cash, checks, or credit cards). They will make weekly deposits of the business proceeds at the local bank. As the time approaches for the business to open, Salim is concerned that he will have a little control over the…
33- In the cash count made on 10.05.202, a cash balance of 35,000 TL was determined. As of the same date, the total debit of the cash account is TL 45,000, and the total receivable is TL 15,000. Which of the following calculations is correct in this situation? a) 197 Lack of Counting and Receipt Hs. 5,000 TL (Borrower) B) 770 General Administrative Expenses Hs. 5,000 (Borrower) NS) 760 Marketing Sales and Distribution Expenses Hs. 5,000 (Borrower) D) 397 Count and Receipt Surplus Hs. 5,000 TL (Creditor) TO) 100 Case Hs. 5,000 TL (Creditor)
Holcomb Candles, Inc., manufactures decorative candles and has contracted with a national retailer to supply a set of special holiday candles to its 8,500 stores. These include large jars, small jars, large pillars, small pillars, and a package of four votive candles. In negotiating the contract for the display, the manufacturer and retailer agreed that 8 feet would be designated for the display in each store, but that at least 2 feet would be dedicated to large jars and large pillars together, and at least 1 foot to the votive candle packages. At least as many jars as pillars must be provided. The manufacturer has obtained 200,000 pounds of wax, 250,000 feet of wick, and 125,000 ounces of holiday fragrance. The amount of materials and display size required for each product are shown in the accompanying table. How many of each product should be made to maximize the profit? LOADING... Click here to view the materials and display size data. Question content…
The director collected $3000 amount as funds for the tournament on the condition that the amount will be spent on buying prices and trophies and for the two-day tournament and also arranging food for people participating in the tournament. The funds were collected as donations from the people. However, the manager of the club said that as the club is struggling in making profits, $1500 would be spent on the tournament, and the remaining $1500 will be considered as pure profits. This was not acceptable by the person who arranged the funds for the tournament after convincing people that the entire amount will only be used on the tournament. 1. Was it right in challenging my manager? Should I have handled this differently?
The director collected $3000 amount as funds for the tournament on the condition that the amount will be spent on buying prices and trophies and for the two-day tournament and also arranging food for people participating in the tournament. The funds were collected as donations from the people. However, the manager of the club said that as the club is struggling in making profits, $1500 would be spent on the tournament, and the remaining $1500 will be considered as pure profits. This was not acceptable by the person who arranged the funds for the tournament after convincing people that the entire amount will only be used on the tournament. 1. Do you think the companies would have felt cheated if the golf course had pocketed theirdonations?

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