10 The demand curve for a maker of spare parts is given by: Q= 300 - 0.5P, and its cost function by C = 20,000 + 200Q + 0.5Q2.a Treating price as the relevant decision variable, create a spreadsheet based on the example shown below (enter formulas for allb. Use your spreadsheet's optimizer to find the optimal price. The markup rate, (P-MC/P, must be the same as -1/Ep at the optimal (profit-max) price.c. Save your Excel fine and upload it by clicking on Browse Local Files below.G1 Price(P) Quantity(a) Revenue(R) Cost(C) ProfitElasticity(Ep) MC(P-MC)/P (-1/Ep)S4030162002645010250230 0.574074 0.111111Attach FileBrowse Local Files

Given information Demand Curve Q=300-0.5P Cost function C=20000+200Q+0.5Q2 Price Elasticity…

Answered: The demand curve for a maker of spare…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The decision matrix below indicates the profit expected from four alternatives under four states of nature. Select the preferred alternative by applying each of the following criteria:
Based on a predicted level of production and sales of 16,000 units, a company anticipates total variable costs of $78,400, fixed costs of $27,200, and operating income of $34,080. Based on this information, the budgeted amount of variable costs for 13,000 units would be: A) $165,192 B) $27,200 C) $61,280 D) $63,700 E) $78,400
Preliminary plans are under way for the construction of a new stadium for a major league baseball team. City officials have questioned the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may buy the boxes for $340,000 each. The fixed construction cost for the upper deck area is estimated to be $5,780,000, with a variable cost of $170,000 for each box constructed. (a) What is the break-even point for the number of luxury boxes in the new stadium? x = (b) Preliminary drawings for the stadium show that space is available for the construction of up to 52 luxury boxes. Promoters indicate that buyers are available and that all 52 could be sold if constructed. (ii) What profit is anticipated? (Enter a negative value if a predicted loss.) $
The consultancy Imagination Inc. is working with its manufacturing client Parts-R-Us to improve their on-time performance. The firm can earn a bonus of up to $1,000,000 based on how much the on-time performance actually improves. It's current (baseline) on-time performance is 90%. The company typically completes approximately 1,000 orders per month, with approximately 100 orders delayed. The bonus payment is prorated according to the following criteria: · The on-time performance improvement is calculated based on a reduction in late events or an improvement in on-time performance. · No bonus is earned for the first 25% reduction in late events, say from 100 to 75. Maximum bonus is earned once Parts-R-Us achieves 95% on-time performance. Please answer the following: Write down a formula to determine the total bonus amount to be received Using your formula, show how much bonus would be paid if Parts-R-Us achieves 94% on-time performance.
A company manufactures screwdrivers and has fixed costs of SEK 3,400,000 and variable costs per screwdriver of SEK 6. These costs are not assumed to change with varying production volumes. According to company policy, the sales price is set at double the purchase price.The company's production capacity for screwdrivers is 900,000, but the target for production is for various strategic reasons set at a utilization rate of 70%. Calculate the company's safety margin in SEK, when the utilization rate has been reached and all produced screwdrivers have been sold.
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all dropdown options are same as the one shown
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12) Production Quantity Model If a company has an ordering cost of $250, a carrying cost of $4 per unit, annual product demand of 6,000 units, and its production rate is 100 units per day. The company operates 320 days a year. The optimal order quantity is approximately Group of answer choices 1,027 756 962 866
Rho Merchandising supplies T-shirts to AK Mart. Currently, Rho orders T-shirts from varioussuppliers. One of the T-shirts is ordered in batches of 150 units. It has been estimated that an annualdemand for T-shirts is 25,000 pieces. Furthermore, carrying cost is estimated to be P10 per T-shirt peryear. For the other policy to be optimal, determine what the ordering cost would have to be.
Five thousand new smart camera systems are needed annually to expand the security surveillance of roads, buildings, airports, parks, etc. in a large metropolitan area. The system components can be obtained in one of three ways: (1) Make them in one of three plants partially owned by the government; (2) Buy them off the shelf from the one and only manufacturer; or (3) Contract to have them made to specifications by a vendor. The estimated annual cost for each alternative is dependent upon specifics of the plant, the producer, or the vendor. The information below details the alternative, a probability of occurrence, and the estimated annual cost. (a) Construct and solve a decision tree to determine the least-cost alternative to provide the components. (b) Once you have chosen the alternative on the tree, use a spreadsheet to determine the change in probability that the Buy alternative requires to make it equally attractive with the chosen alternative. Assume that the probability change…
A civil engineer has 2 alternative designs for a house. a. Design 1 calls for a workforce consisting of 5 men each costing P400/day. This design will be finished in 4 months. b. Design 2 calls for a workforce consisting of 10 men each costing P370/day and is expected to be finished in 3 months. In addition, there will be a project engineer who will supervise the work and will be paid P800/day. Disregarding material cost, how much is the total salary expenses for Design 1 and for Design 2? Assume that there are 24 working days in a month.

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