This is just a follow-up question for the Operation Research Problem Solving, ANSWER question D and E only. 2. A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The differentmechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from thedolls is dependent on the volume of sales. The anticipated payoffs are as follows.Moderate Demand Heavy Demand0.45$190,000$420,000$240,000Light DemandProbabilityWind-up actionPneumatic actionElectrical action0.25$325,000$300,000-$400,0000.3S170,000$400,000$800,000a. What is the EMV of each decision alternative?b. Which action should be selected?c. What is the expected value with perfect information?d. What is the expected value of perfect information?e. What is the expected opportunity loss?

Given: Alternative Light demand Moderate Demand Heavy Demand Wind-up action 325,000…

Answered: 2. A toy manufacturer has three…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Cannibalization Analysis The "Bare Bone" model has a list price of $2.99. UVC is $1.50 and projected sales for the year is 2,000,000. "Bill" retails for $3.99 with a UVC of $1.79 and has a sales forecast of 500,000. Projected first year sales of "Bodacious Bill" is 1,000,000 units. Fixed costs to enable insertion of audio sound effects for "Bodacious Bill" will be $2M for the first year. The "Bodacious Bill" will have a 50% markup on the breakeven price. Unit cost (breakeven price) = unit variable cost + (fixed cost/# of products produced). List (markup) price = unit cost * (1+ desired % markup on the retail price). Unit variable cost, including technical parts, add up to $4.99 What would be the list price on Bodacious Bill to break even? 50% of first year sales would be incremental. Of the remaining volume, 80% will be cannibalized from "Bill" sales and 20% would be offset with "Bare Bone" volume.
NOTES Find the UCL and LCL .1000 +3 3 1000 (1-1000) 100
Choose one of the following products and describe how itmay (or already has) become vulnerable to substitution. Thendescribe an overall strategy, with two or three tactics, forreducing this vulnerability.a. printed copies of periodicals or booksb. TVsc. greeting cardsd. travel agencies
Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: Percent Defective Probability for Winter Park Probability for Dayton 1% 3% 5% .70 .20 .10 .30 .30 .40 Kellogg orders 10,000 tests per order. A defective Breathalyzer test set can be repaired for $0.50. When determining the costs for each branch (Decision Tree), utilize the number per order (*) the percent defective (*) the repair cost. a. What is the EMV for Winter Park? $ [Select ] b. What is the EMV for Dayton? $$127 c. What choice should Deborah Kellogg make? [Select] >
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A new phenomenon called ‘Apparel on Demand’ is slowly making its presence felt. It is an You have the opportunity to invest INR 100 billion for your company to develop a jet engine for commercial aircrafts. Development will span 5 years. The final product costing Rs. 500 million / unit could reach a sales potential, eventually of Rs. 2500 billion. The new engine can be placed in service 5 years from now, but only if it qualifies four years from now for certification clearing commercial use and only if it meets America’s Federal Aviation Administration’s (FAA) ever tightening standards for noise reduction. Certification also has to be obtained from India’s Director General of Civil Aviation (DGCA). There is competition from world-class manufacturers like Pratt and Whitney and Rolls Royce who are developing competing engines. If you decide to proceed with the project, you must also determine where the new engines will be produced and develop the manufacturing facilities. If you decline…
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4. Happy Toy Company's R&D The Happy Toy Company's R&D department is always looking for great ideas for new toys. On average, the R&D department generates about 10 new toy ideas a week. To go from idea to approved product, the idea must go through 5 stages: Pr(Fail) = 40% Pr(Fail) = 50% Pr(Fail) = 65% Pr(Fail) = 80% Initial Safety testing Focus Final decision Mockup screening group In initial screening a staff member spends 2 hours considering the idea. In mock-up, the idea is sent to one of many suppliers to produce a physical mock-up of the toy. There is essentially unlimited capacity at this stage, but it takes 4 days to get the mockup built even though multiple mockups can be built simultaneously. In safety testing each idea requires 2 days from a staff member to have the idea checked for safety. In focus groups each idea requires 3 hours from a staff member to have the idea test marketed. Finally, the management team meets for 4 hours per idea to decide if the toy should be added…
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