A company has two design options, namely Design A and Design B, where the two products will be sold in two regions, namely Bogor and Jakarta and the sales volume from each region is Bogor 60,000 units at a price of @ $ 120 and Jakarta with sales of 75,000 at a price @ 140. The cost to make design A is $ 87,000 and design B is $ 85,000, while the manufacturing cost for design A is $ 10 / unit and design B is $ 15. If you were an Operational Director, which design would you recommend (probability of selling each product is 50%)

A company has two design options, namely Design A and Design B, where the two products will be sold in two regions, namely Bogor and Jakarta and the sales volume from each region is Bogor 60,000 units at a price of @ $ 120 and Jakarta with sales of 75,000 at a price @ 140. The cost to make design A is $ 87,000 and design B is $ 85,000, while the manufacturing cost for design A is $ 10 / unit and design B is $ 15. If you were an Operational Director, which design would you recommend (probability of selling each product is 50%)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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