plz solve it within 30-40 mins I'll give you multiple upvote Assume that the linear cost and revenue modelsapply. An item costs $4 to make. If fixed costs are$3400 and profits are $28600 when 1000 itemsare made and sold, find the revenue equation. (Letx be the number of items.)R(X) =

Here, we have the following data, Cost per item =4, The fixed costs irrespective of the number of…

Answered: Assume that the linear cost and revenue…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 29P

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The IRR is the discount rate r that makes a project have an NPV of 0. You can find IRR in Excel with the built-in IRR function, using the syntax =IRR(range of cash flows). However, it can be tricky. In fact, if the IRR is not near 10%, this function might not find an answer, and you would get an error message. Then you must try the syntax =IRR(range of cash flows, guess), where guess" is your best guess for the IRR. It is best to try a range of guesses (say, 90% to 100%). Find the IRR of the project described in Problem 34. 34. Consider a project with the following cash flows: year 1, 400; year 2, 200; year 3, 600; year 4, 900; year 5, 1000; year 6, 250; year 7, 230. Assume a discount rate of 15% per year. a. Find the projects NPV if cash flows occur at the ends of the respective years. b. Find the projects NPV if cash flows occur at the beginnings of the respective years. c. Find the projects NPV if cash flows occur at the middles of the respective years.
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A company has determined that its profit for a product can be described by a linear function.The profit from the production and sale of 150 units is $455, and the profit from250 units is $895.(b) You are the CEO for a lightweight compasses manufacturer. The demandfunction for the lightweight compasses is given by p = 40 − 4q2where qis the number of lightweight compasses produced in millions.It costs the company $15to make a lightweight compass.(i) Write an equation giving profit as a function of the number of lightweight compassesproduced.(ii) At the moment the company produces 2 million lightweight compasses and makes a profitof $18,000,000, but you would like to reduce production. What smaller number oflightweight compasses could the company produce to yield the same profit?
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4. A publisher prints copies of a popular weekly tabloid for distribution and sale. The fixed costs are $500 per print run, with each copy printed costing an additional $0.40. If C(q) is the cost function (in $) of the price of the print run as a function of copies printed, what is the formula for C(q)? Select one: a. C(q) = 500 + 0.4q b. C(q) = 500q + 0.4 c. C(q) = (500 + 0.4)q d. C(q) = 500 - 0.4q e. C(q) = 500q - 0.4 5. A hot dog vendor sells an average of 50 hot dogs during a Little League baseball game. If the sales are Normally distributed with a standard deviation of 7 hot dogs, what is the probability the vendor will sell between 45 and 65 hot dogs? Select one: a. 74.50% b. 92.36% c. 99.78% d. 174.50% e. 2.14 f. -0.71 g. 0.71
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Sodaco is considering producing a new product:Chocovan soda. Sodaco estimates that the annual demandfor Chocovan, D (in thousands of cases), has the followingmass function: P(D 30) .30, P(D 50) .40,P(D 80) .30. Each case of Chocovan sells for $5 andincurs a variable cost of $3. It costs $800,000 to build aplant to produce Chocovan. Assume that if $1 is receivedevery year (forever), this is equivalent to receiving $10 atthe present time. Considering the reward for each action andstate of the world to be in terms of net present value, useeach decision criterion of this section to determine whetherSodaco should build the plant.
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you are thinking of opening a small copy shop. It costs $5000 to rent a copier for a year, and it cost $0.03 per copy to operate the copier. Other fixed costs of running the store withh amount to $400 per month. You plan to charge $0.10 per copy, and the store will be open 365 days per year. Each copier can make up to 100,000 copies per year. a. for one to five copiers rented and daily demands of 500, 1000, 1500, 2000 copies perday, find annual profit. That is, find annual profit for each of these combinations of copiers rented and daily demand. b. if you rent three copies, what daily demand for copies will allow you to break even? c. Graph profit as a function of the number of copiers for a daily demand of 500 copiers; for a daily demand of 2000 copies. Interpret your graph

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Assume that the linear cost and revenue models apply. An item costs $4 to make. If fixed costs are $3400 and profits are $28600 when 1000 items are made and sold, find the revenue equation. (Let x be the number of items.) R(X) = %3D