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A manufacturer of Bluetooth headphones examines the historical demand of its product and learns that the average monthly demand is about 3,090 headphones but varies between 2,350 and 4,100 headphones. Each pair of the headphones has a retail price of $120. The monthly fixed production cost ranges from $5,500 to $6,500, with an average of $6,000. The average variable cost of producing a pair of headphones is $35, but because the manufacturing process is not fully automated, the variable cost may vary between $31 and $39 per pair. Develop a risk analysis model to answer the following questions.   What is the monthly profit from the Bluetooth headphones for the most likely, pessimistic, and optimistic scenarios?   The company notices that during the holiday season in December, the demand tends to be higher than in other months. Historically, the demand in December is about 3,578 pairs on average, but also ranges from 2,535 to 4,757 pairs. What is the December profit for the most likely, pessimistic, and o

A manufacturer of Bluetooth headphones examines the historical demand of its product and learns that the average monthly demand is about 3,090 headphones but varies between 2,350 and 4,100 headphones. Each pair of the headphones has a retail price of $120. The monthly fixed production cost ranges from $5,500 to $6,500, with an average of $6,000. The average variable cost of producing a pair of headphones is $35, but because the manufacturing process is not fully automated, the variable cost may vary between $31 and $39 per pair. Develop a risk analysis model to answer the following questions.   What is the monthly profit from the Bluetooth headphones for the most likely, pessimistic, and optimistic scenarios?   The company notices that during the holiday season in December, the demand tends to be higher than in other months. Historically, the demand in December is about 3,578 pairs on average, but also ranges from 2,535 to 4,757 pairs. What is the December profit for the most likely, pessimistic, and o

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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A manufacturer of Bluetooth headphones examines the historical demand of its product and learns that the average monthly demand is about 3,090 headphones but varies between 2,350 and 4,100 headphones. Each pair of the headphones has a retail price of $120. The monthly fixed production cost ranges from $5,500 to $6,500, with an average of $6,000. The average variable cost of producing a pair of headphones is $35, but because the manufacturing process is not fully automated, the variable cost may vary between $31 and $39 per pair. Develop a risk analysis model to answer the following questions.

 

  1. What is the monthly profit from the Bluetooth headphones for the most likely, pessimistic, and optimistic scenarios?

     

  2. The company notices that during the holiday season in December, the demand tends to be higher than in other months. Historically, the demand in December is about 3,578 pairs on average, but also ranges from 2,535 to 4,757 pairs. What is the December profit for the most likely, pessimistic, and optimistic scenarios?

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