DSYou are a fruit vendor in the Coronation Market in Kingston Jamaica. You are facing the decision to purchase 100, 120 or 130 bags of oranges forresale each week. However, you are not sure of the demand-per week. You also consider that you can move around the market, depending on thenumber of bags, selling for different prices you have and you can also sell surplus for a reduced price. The payoff table below gives the details ofthe possible profit for each of these combinations. What is the optimal decision, using the Maximin criterion?Payoff TableProfits($)Weekly Demand (State ofNature)AverageDecision(Purchase)BelowRobustPar75000900001100005000055000100 Bags120 Bags130 Bags65000750004500065000Select one:O a. Purchase 100 bags (expected profit = $50,000)O b. Purchase 120 bags (expected profit = $65,000)O c. Purchase 130 bags (expected profit = $45,000)o d. Purchase 130 bags (expected profit = $65,000)9:25 AMCa ) ENG12/16/202185°F

The maximin rule concerns choosing the option that maximizes the lowest or minimum pay-off possible.…

Answered: You are a fruit vendor in the…

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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Can you explain to me why my teacher said that the answer in here can't be determined? Or was she wrong? Please accompany the explanation with a solution so I could understand better. Thank you. If the sales this year amounted to P500,000, sales this year at last year's prices is P460,000, the cost of sales this year is P300,000, and the cost of sales this year at last year's price is P260,000. How much is the gross profit variation due to sales price factor?
Please show all work and explain answer. OneRing Company sells memorabilia to residents of Middle-Earth. They are about to invest $6 million in a new ring making plant. Fixed costs of operating the plant are $1 million a year. The ring costs $60/unit to manufacture (variable cost) and will be sold for $200/unit. The plant will last for 5 years, and will be depreciated over 5 years to zero using the straight-line method. The plant will have no salvage value after five years. Net working capital requirements are negligible for this project. Assume there are no taxes in Middle-Earth, and that the appropriate discount rate for the project is ten percent. How many rings per year must OneRing sell in order to break even?
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“Suppose that you have been given a summer job at J limited, a company that manufactures sophisticated radar sets for commercial aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its tremendous growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs: The cost of the memory chips used in a radar set. Factory heating costs. Factory equipment maintenance costs. Training costs for new administrative employees. The cost of the solder that is used in assembling the radar sets. The travel costs of the company’s salespersons. Wages and salaries of factory security personnel. The cost of air-conditioning executive offices. Wages and salaries in the department that handles billing customers. Depreciation on the equipment in the fitness room used by factory workers. Telephone expenses incurred by factory management.…
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