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- Please show the step by step and complete solution. The answer must be ₱106,116.59A factory manager is planning for the manufacture of plywood to be sold overseas. The fixed cost of operation is estimated at $800,000 per month while the variable cost is $155 per thousand board feet of plywood. The selling price will depend on how much will be produced and sold and is determined by the relationship, price per thousand board feet, p = $600 – 0.05D, where D is the amount produced and sold in thousands of board feet. Determine the range of profitable production. For profitable production, production must be at least thousands of board feet per month, but not more than (Round to the nearest unit.)A manufacturer of a new patented product has found that he can sell 70 units a week to the customer if the price is $48. In error, the price was recently advertised at $78 and as a result, only 40 units were sold in a week. The manufacturers fixed costs of production are $1,710 a week and variable costs are $9 per unit. You are required to: d. Assuming a sudden change in trading conditions resulting in a 20% reduction in demand at all price levels, to find the equation of the new demand function and to recommend how the manufacturer should respond.
- there is a reduced cost of minus 65 on ETV. I like to say this means if we made ETV = 1 when it was 0 in the optimal solution, then the exposure quality would fall by 65. Another interpretation (that I am not a big fan of, but perfectly acceptable) is if the objective function exposure quality of 90 changes by 65 ETV will not be 0. Should the 90 be 25 or 155?Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Medium Low Own staff 650 650 600 Outside vendor 900 600 300 Combination 800 650 500 If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?What is the expected annual cost associated with that recommendation?Expected annual cost = $ Construct a risk profile for the optimal decision in part (a).The input in the box below will not be graded, but may be reviewed and considered by your instructor.What is the probability of the cost…Identify the following variables as either discrete or continuous: (a) The number of times heads comes up in 100 tosses of a coin (b) The number of accidents occurring in a specified section of a freeway (c) The weight of boxes shipped from an Amazon warehouse (d) The concentration of carbon dioxide in the air of San Diego versus time (e) Optimistic, most likely, and pessimistic estimates of salvage value
- Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 10%. However, the customer has heard this claim before and believes there is only a 40% chance of actually realizing that cost reduction and a 60% chance of realizing no cost reduction. Assume the customer has an initial total cost of $400. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is . Suppose the sales representative initially offers the accounting system to the customer for a price of $28.00. The information asymmetry stems from the fact that the has more information about the efficacy of the accounting system than does the . At this price, the customer purchase the accounting system, since the expected…there are no solutionsNeed complete solution. A company produces and sells a consumer product and thus far has been able to control the volume of the product by varying the selling price. The company is seeking to maximize its net profit. It has been concluded that the relationship between price and demand, per month, is approximately D = 500 - 5p, where p is the price per unit in dollars. The fixed cost is $1,000 per month, and the variable cost is $20 per unit. Obtain the answer mathematically to the following questions: a.What is the optimal number of units that should be produced and sold per month? b. What is the maximum profit per month? c.What are the breakeven sales quantities and the range of profitable demand volume?