Company X manufactures four different types of toys for kids including cars, bikes, plane and ship. The gross margin, production, and profit are listed below for each items are shown below: Bike 1.3 Ship Product Gross margin/unit Minutes/unit Gross margin/minute Maximum production 280000 112000 Profit Car 0.3 Plane 0.75 1.2 2.5 1.5 2 0.30 0.52 0.50 0.60 18667 140000 84000 145600 14000 168000 Let the production capacity of the machine used for production is 4500 hours per year. Which of the following would be the minimum value of gross margin per minute of ship that would make it economical for production? (A)0.65 (B) 0.70 (C) 0.87 (D) Can't be determined
Q: The concept of ‘Profit maximization’ means a. increasing the firm’s net income as much as possible…
A: As a matter of fact, we can say that where the concept of ‘Profit maximization’ means increasing the…
Q: Triple X Company manufactures and sells refrigerators. It makes some of the parts for the…
A: Fixed cost= $50,000 Labor cost= $1,25,000 Factory overhead= $60,000 Raw…
Q: Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses…
A: Given data is Component Manufacturing cost($) Purchase cost($) Frame 37 50 Support 10.50 14…
Q: AutoTime, a manufacturer of electronic digital timers, has a monthly fixed cost of $50,000 and a…
A: Monthly Fixed cost = $50,000 Production Cost = $7 each Selling Price = $15 each
Q: The Willows Company accounts for its sales on installment basis. Provided below are the beginning…
A: Give that: Jan 1, 2021 Dec 31, 2021 Installment accounts receivable -2019 140000 40000…
Q: Imagine that a firm produces good X with just two factors: capital, which is fixed in supply; and…
A: The detailed solution to this question is given in Step 2.
Q: Consider a monopolistically competitive market with NN firms. Each firm's business opportunities are…
A: given,
Q: Digital Controis, Inc. (DCI), manufactures two modeis of a radar gun used by police to monitor the…
A: Given, …… (1)
Q: Evaluate the following given the following values: 1. The price of pair of socks is Php 200. How…
A: The above questions are from the topic: Profit and Loss The answer to the questions are given below:
Q: Steve's Scooer plans to sell it standard scooter for $500 and it chrome for $650. Steve purchases…
A: Weighted Average Contribution Margin per unit = (350x1 + 400 x 3) / 4 = $387.50 per unit 1. reach…
Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…
A: Gross Profit =Profit per unit times quantity = 2×19400 =…
Q: Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses…
A: Given data is Component Manufacturing cost($) Purchase cost($) Frame 37 50 Support 10.50 14…
Q: A manager wants to know how many units of each product to produce on a daily basis in order…
A: A = quantity of product A B = quantity of product B C = quantity of product C
Q: 3.4-17. Comfortable Hands is a company which features a prod- uct line of winter gloves for the…
A: (a) Let M = number of men’s gloves to produce per week Let W = number of women’s gloves to…
Q: XYZ Corporation manufactures two products, Simple and Complex. The following annual information was…
A: Given data Total annual fixed cost = P18000 Plant capacity = 12000 hours
Q: Based on the following sensitivity analysis, which of the following products would be considered…
A: Sensitivity analysis or study is a financial representation that defines how target variables are…
Q: . Using the high-low method, express the company’s maintenance costs as an equation where x…
A: Variable cost an be computed as, Variable cost = (Cost at highest activity - Cost at lowest…
Q: Pi Basic Variables | Quantity 4 4 2 y S1 S2 4 -1 S2 1 1 1 Zj Pi Zi 16 4 -4 2 4 The pivot column in a…
A: Given -
Q: (1) Write about capacity planning (2) the steps taken for effective capacity planning (3) how a…
A: Capacity planning: Capacity Planning means the arrangement through which organization match the…
Q: Calculate the breakeven point for each product? Calculate contribution ratio for each product 3.…
A: Break even point is the point of no profit no loss. It is the point where the company is able to…
Q: Telsla produces a range of electric car models. The following presents hypothetical information in…
A: An optimal blend amplifies the potential unit deals while keeping up with - or in a perfect world…
Q: 2) NaserCo Wants to display it products within 10,000 feet square according to the following Data:…
A: Let, A = Number of units of product A in display B = Number of units of product B in display C =…
Q: The following data pertain to the Oneida Restaurant Supply company for the year just ended.…
A: Overhead cost refers to all the indirect expenses that are incurred during the manufacturing…
Q: APPROACH Formulate this production-mix situation as an LP problem. The production manager first…
A: MAX Z = 9x1 + 12x2 + 15x3 + 11x4subject to.5x1 + 1.5x2 + 1.5x3 + x4 <= 15003x1 + x2 + 2x3 + 3x4…
Q: A leading manufacturer of video games is about to introduce four new games. The accompanying table…
A: The Break-even point occurs when the total cost and total revenue are even; the situation of no…
Q: 3. Maximize: z = 11x1 + 16x2 + 15x3 subject to the following constraints X1 + 2x2 + r3 0
A: Decision Variable: x1, x2, and x3 are the decision variables. Objective function: Max Z = 11x1 +…
Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…
A: Given that - Profit per unit $5 Quantity 18,200 Gross profit ? Total costs 8,300 Net…
Q: 2. A company has to minimize its cost = 200X + 300Y, subject to the following constraints: X + Ys 50…
A:
Q: Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called…
A: 1. Direct material price variance = Actual quantity x standard price minus Actual quantity x actual…
Q: Perfumes Ltd has two divisions: the Perfume Division and the Bottle Division. The company is…
A: a). The exchange price should be equivalent to the variable cost of production so that there is no…
Q: A steel bar manufacturer business can make 15000 bar a week. It is determined that to achieve this…
A: The break-even point is reached when overall costs and total revenues are equal, leaving the firm…
Q: An analyst has started preparing a spreadsheet as shown below. Column A contains the headings for…
A: An analyst has commenced making a spreadsheet as mentioned here- A B Price per Unit…
Q: Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: A Leading manufacturer of Action Figures is about to introduce four new Action Figures. The…
A: given,
Q: 1. Cox Electric makes electronic components and has estimated the following for a new design of one…
A: Given - Fixed cost = $24,375 Material cost per unit = $0.17 Labor cost per unit = $0.12 Revenue…
Q: Perfumes Ltd has two divisions: the Perfume Division and the Bottle Division. The company is…
A: Transfer Price: It is a price charged on the goods manufactured by the one division and transferred…
Q: Creative Sdn Bhd. produces two types of lamps, classic and decorative. The detailed information on…
A: The question is related to Limiting Factor. The details are given.
Q: A handicraft products trader is selling leather cases for $40 the unit. To run his business, he…
A: 1) If the trader plan to import the product from one country then that will be malayasia because the…
Q: The ABC Company makes two products that can be produced on two different production lines. Both…
A: Given data is, Objective function: Max Z==500x1+700x2 Subject to: 1.) 3x1+2.50x2≤8002.) 5x1+4x2≤600…
Q: Radiant wants to hire Cargo planes for transporting their goods. They contacted VIP Transportation…
A: Given data is
Q: Bahrain International Company has 1400 KG of Raw Material to make two products: X1 and X2. There are…
A: The question is related to maximization of linear programming.
Q: Dana’s Ribbon World makes award rosettes. Following is information about the company:…
A: The question is related to the Cost Volume Profit Analysis and Leverage. The Basic Sales equation is…
Q: XYZ Corporation manufactures two products, Simple and Complex. The following annual information was…
A: Profit maximization is a cycle business firms go through to guarantee the best result and cost…
Q: Based on the following sensitivity analysis, which of the following products would be considered…
A: Given sensitivity report : There are allowable ranges given corresponding to each variable.…
Q: Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50…
A: fixed expenses manufactured over head = 120000selling expenses =52000adminstrative expenses = 59000…
Q: Based on the following sensitivity analysis, which of the following products would be considered…
A:
Q: PMC Company manufactures and sells three lines of product with contribution margins per unit as…
A: Solution Part a. Statement of Ranking Particulars Product A Product B Product C Contribution…
Q: Calculate the following based on a year duration: (a) Percentage invested in inventory (PIII); (b)…
A:
Q: The Chineke Group of Company manufactures two products, namely product B and product P, and provides…
A: COnvert the given costs into quantity to make constraints for labour hours, and material used…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Suppose you currently have a portfolio of three stocks, A, B, and C. You own 500 shares of A, 300 of B, and 1000 of C. The current share prices are 42.76, 81.33, and, 58.22, respectively. You plan to hold this portfolio for at least a year. During the coming year, economists have predicted that the national economy will be awful, stable, or great with probabilities 0.2, 0.5, and 0.3. Given the state of the economy, the returns (one-year percentage changes) of the three stocks are independent and normally distributed. However, the means and standard deviations of these returns depend on the state of the economy, as indicated in the file P11_23.xlsx. a. Use @RISK to simulate the value of the portfolio and the portfolio return in the next year. How likely is it that you will have a negative return? How likely is it that you will have a return of at least 25%? b. Suppose you had a crystal ball where you could predict the state of the economy with certainty. The stock returns would still be uncertain, but you would know whether your means and standard deviations come from row 6, 7, or 8 of the P11_23.xlsx file. If you learn, with certainty, that the economy is going to be great in the next year, run the appropriate simulation to answer the same questions as in part a. Repeat this if you learn that the economy is going to be awful. How do these results compare with those in part a?If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)? c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.The eTech Company is a fairly recent entry in the electronic device area. The company competes with Apple. Samsung, and other well-known companies in the manufacturing and sales of personal handheld devices. Although eTech recognizes that it is a niche player and will likely remain so in the foreseeable future, it is trying to increase its current small market share in this huge competitive market. Jim Simons, VP of Production, and Catherine Dolans, VP of Marketing, have been discussing the possible addition of a new product to the companys current (rather limited) product line. The tentative name for this new product is ePlayerX. Jim and Catherine agree that the ePlayerX, which will feature a sleeker design and more memory, is necessary to compete successfully with the big boys, but they are also worried that the ePlayerX could cannibalize sales of their existing productsand that it could even detract from their bottom line. They must eventually decide how much to spend to develop and manufacture the ePlayerX and how aggressively to market it. Depending on these decisions, they must forecast demand for the ePlayerX, as well as sales for their existing products. They also realize that Apple. Samsung, and the other big players are not standing still. These competitors could introduce their own new products, which could have very negative effects on demand for the ePlayerX. The expected timeline for the ePlayerX is that development will take no more than a year to complete and that the product will be introduced in the market a year from now. Jim and Catherine are aware that there are lots of decisions to make and lots of uncertainties involved, but they need to start somewhere. To this end. Jim and Catherine have decided to base their decisions on a planning horizon of four years, including the development year. They realize that the personal handheld device market is very fluid, with updates to existing products occurring almost continuously. However, they believe they can include such considerations into their cost, revenue, and demand estimates, and that a four-year planning horizon makes sense. In addition, they have identified the following problem parameters. (In this first pass, all distinctions are binary: low-end or high-end, small-effect or large-effect, and so on.) In the absence of cannibalization, the sales of existing eTech products are expected to produce year I net revenues of 10 million, and the forecast of the annual increase in net revenues is 2%. The ePIayerX will be developed as either a low-end or a high-end product, with corresponding fixed development costs (1.5 million or 2.5 million), variable manufacturing costs ( 100 or 200). and selling prices (150 or 300). The fixed development cost is incurred now, at the beginning of year I, and the variable cost and selling price are assumed to remain constant throughout the planning horizon. The new product will be marketed either mildly aggressively or very aggressively, with corresponding costs. The costs of a mildly aggressive marketing campaign are 1.5 million in year 1 and 0.5 million annually in years 2 to 4. For a very aggressive campaign, these costs increase to 3.5 million and 1.5 million, respectively. (These marketing costs are not part of the variable cost mentioned in the previous bullet; they are separate.) Depending on whether the ePlayerX is a low-end or high-end produce the level of the ePlayerXs cannibalization rate of existing eTech products will be either low (10%) or high (20%). Each cannibalization rate affects only sales of existing products in years 2 to 4, not year I sales. For example, if the cannibalization rate is 10%, then sales of existing products in each of years 2 to 4 will be 10% below their projected values without cannibalization. A base case forecast of demand for the ePlayerX is that in its first year on the market, year 2, demand will be for 100,000 units, and then demand will increase by 5% annually in years 3 and 4. This base forecast is based on a low-end version of the ePlayerX and mildly aggressive marketing. It will be adjusted for a high-end will product, aggressive marketing, and competitor behavior. The adjustments with no competing product appear in Table 2.3. The adjustments with a competing product appear in Table 2.4. Each adjustment is to demand for the ePlayerX in each of years 2 to 4. For example, if the adjustment is 10%, then demand in each of years 2 to 4 will be 10% lower than it would have been in the base case. Demand and units sold are the samethat is, eTech will produce exactly what its customers demand so that no inventory or backorders will occur. Table 2.3 Demand Adjustments When No Competing Product Is Introduced Table 2.4 Demand Adjustments When a Competing Product Is Introduced Because Jim and Catherine are approaching the day when they will be sharing their plans with other company executives, they have asked you to prepare an Excel spreadsheet model that will answer the many what-if questions they expect to be asked. Specifically, they have asked you to do the following: You should enter all of the given data in an inputs section with clear labeling and appropriate number formatting. If you believe that any explanations are required, you can enter them in text boxes or cell comments. In this section and in the rest of the model, all monetary values (other than the variable cost and the selling price) should be expressed in millions of dollars, and all demands for the ePlayerX should be expressed in thousands of units. You should have a scenario section that contains a 0/1 variable for each of the binary options discussed here. For example, one of these should be 0 if the low-end product is chosen and it should be 1 if the high-end product is chosen. You should have a parameters section that contains the values of the various parameters listed in the case, depending on the values of the 0/1 variables in the previous bullet For example, the fixed development cost will be 1.5 million or 2.5 million depending on whether the 0/1 variable in the previous bullet is 0 or 1, and this can be calculated with a simple IF formula. You can decide how to implement the IF logic for the various parameters. You should have a cash flows section that calculates the annual cash flows for the four-year period. These cash flows include the net revenues from existing products, the marketing costs for ePlayerX, and the net revenues for sales of ePlayerX (To calculate these latter values, it will help to have a row for annual units sold of ePlayerX.) The cash flows should also include depreciation on the fixed development cost, calculated on a straight-line four-year basis (that is. 25% of the cost in each of the four years). Then, these annual revenues/costs should be summed for each year to get net cash flow before taxes, taxes should be calculated using a 32% tax rate, and taxes should be subtracted and depreciation should be added back in to get net cash flows after taxes. (The point is that depreciation is first subtracted, because it is not taxed, but then it is added back in after taxes have been calculated.) You should calculate the company's NPV for the four-year horizon using a discount rate of 10%. You can assume that the fixed development cost is incurred now. so that it is not discounted, and that all other costs and revenues are incurred at the ends of the respective years. You should accompany all of this with a line chart with three series: annual net revenues from existing products; annual marketing costs for ePlayerX; and annual net revenues from sales of ePlayerX. Once all of this is completed. Jim and Catherine will have a powerful tool for presentation purposes. By adjusting the 0/1 scenario variables, their audience will be able to see immediately, both numerically and graphically, the financial consequences of various scenarios.
- Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?Suppose you begin year 1 with 5000. At the beginning of each year, you put half of your money under a mattress and invest the other half in Whitewater stock. During each year, there is a 40% chance that the Whitewater stock will double, and there is a 60% chance that you will lose half of your investment. To illustrate, if the stock doubles during the first year, you will have 3750 under the mattress and 3750 invested in Whitewater during year 2. You want to estimate your annual return over a 30-year period. If you end with F dollars, your annual return is (F/5000)1/30 1. For example, if you end with 100,000, your annual return is 201/30 1 = 0.105, or 10.5%. Run 1000 replications of an appropriate simulation. Based on the results, you can be 95% certain that your annual return will be between which two values?Use the table below to answer the questions that follow and caculate the Expected Monetary Value(EMV) of the different outcomesDECISION TABLE WITH CONDITIONAL VALUESSTATE OF NATUREFAVORABLE OUTCOME UNFAVORABLE OUTCOMEALTERNATIVES ($) ($)Start a big Company 2,000,000 -500,000Start a small company 800,000 -200,000Build Nothing 0 0Probabilities 0.3 0.7Calculate the following The EMV Maximin criterion Maximax criterion Minimax criterion
- Based on Brams and Taylor (2000). Suppose that EliLilly and Pfizer are going to merge. Merger negotiations must settle the following issues: ■ What will the name of the merged corporation be?■ Will corporate headquarters be in Indianapolis(Lilly wants this) or New York (Pfizer wants this)?■ Which company’s chairperson will be chairperson of the merged corporation?■ Which company gets to choose the CEO?■ On the issue of layoffs, what percentage of each company’s view will prevail?Brams developed a remarkably simple method for the two adversaries to settle their differences. (This same method could be used to settle differences between other adversaries, such as a husband and wife in a divorce, Arab and Israel in Middle East, and so on.) Each adversary allocates 100 points between all of the issues. These allocations are listed in the file P04_84.xlsx. For example, Lilly believes headquarters is worth 30 points, whereas Pfizer thinks headquarters is worth only 15 points. Layoffs may be…The cost data for Evencoat Paint for the year 2019 is as follows: Month Gallons ofPaintProduced EquipmentMaintenanceExpenses January 110,000 $70,700 February 68,000 66,800 March 71,000 67,000 April 77,000 68,100 May 95,000 69,200 June 101,000 70,300 July 125,000 70,400 August 95,000 68,900 September 95,000 69,500 October 89,000 68,600 November 128,000 72,800 December 122,000 71,450 A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $ Variable cost $“Good Intentions” (GI) company produces two products, which it sells on both a cash and credit basis. Revenues from credit sales will not have been received but are included in determining profit earned during the current six-month period. Sales during the next six months can be made either from units produced during the next six months or from the beginning inventory. Relevant information about products one and two is as follows. During the next six months, at most 150 units of product type 1 can be sold on a cash basis, and at most 100 units of product 1 can be sold on a credit basis. It costs £35 to produce each unit of product type 1, and each sells for £40. A credit sale of a unit of product 1 yields £0.50 less profit than a cash sale (because of delays in receiving payment). Two hours of production time are needed to produce each unit of product 1. At the beginning of the six-month period, 60 units of product 1 are in the inventory. During the next six months, at most 175 units…
- An investor is considering investing in stocks, real estate, or bonds economic conditions. Suppose that the probabilities for good, stable and poor conditions are 0.2, 0.4 and … (figure it out), respectively. Table 1 shows the payoff returns for the investor’s decision situation. Table 1: Investment returns Economic Conditions Investment Good Stable Poor Stocks R5 000 R7 000 R3 000 Real estate -R2 000 R10 000 R6 000 Bonds R4 000 R4 000 R4 000 Assuming the probabilities of the occurrence of the state of nature are unknown, what will be the best investment alternative; a) If the decision maker is pessimistic about the future state, (3) b) If the decision maker strikes a compromise between the maximin and maximax, assuming the coefficient of pessimism is 0.2. (4) c) If the decision is based on opportunistic loss. (6) d) If we use the equally likelihood criterionBilbo Baggins wants to save money to meet threeobjectives. First, he would like to be able to retire 30 years from now with a retirementincome of $23,000 per month for 20 years, with the first payment received 30 yearsand 1 month from now. Second, he would like to purchase a cabin in Rivendell in10 years at an estimated cost of $320,000. Third, after he passes on at the end of the20 years of withdrawals, he would like to leave an inheritance of $1,000,000 to hisnephew Frodo. He can afford to save $2,100 per month for the next 10 years. If hecan earn an 11 percent EAR before he retires and an 8 percent EAR after he retires,how much will he have to save each month in Years 11 through 30?