Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
8th Edition
ISBN: 9781305947412
Author: Cliff Ragsdale
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 20QP
a)
Summary Introduction
To formulate: An LP model for the problem.
b)
Summary Introduction
To sketch: The feasible region for the problem.
c)
Summary Introduction
To calculate: The optimal solution using level
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Michael is the marketing executive of SHOPEE and he is planning to launch the 2.2.22 online SALE through price discounts, either 40% off or 20% off. He also learned that SHOPEE closest competitor LAZADA , is planning to promote also a 2.22.22 online SALE with price discounts , either 50% off or 30% off. If SHOPEE launches the 40% off, it will gain nothing. If LAZADA launches the 50% off or gain 8,000,000 if LAZADA launches the 30% off. If SHOPEE launches the 20% off, it will lose 2,000,000 if LAZADA launches the 50% off or lose 5,000,000 if LAZADA launches the 30% off.
1.Which strategy is dominated by SHOPEE depending on strategy of LAZADA?
A. 50% OFF
B. 40% OFF
C. 20% OFF
D. 30% OFF
E. NONE
2.What should be the strategy of LAZADA?
A. 50% OFF
B. 40% OFF
C. 30% OFF
D. 20% OFF
A young computer engineer has $12,000 to invest and three different investment options (funds) to choose from. Type 1 guaranteed investment funds offer an expected rate of return of 7%, Type 2 mixed funds (part is guaranteed capital) have an expected rate of return of 8%, while an investment on the Stock Exchange involves an expected rate of return of 12%, but without guaranteed investment capital. Computer engineer has decided not to invest more than $2,000 on the Stock Exchange in order to minimize the risk. Moreover for tax reasons, she needs to invest at least three times more in guaranteed investment funds than in mixed funds.
Assume that at the end of the year the returns are those expected; she is trying to determine the optimum investment amounts.
(a) Express this problem as a linear programming model with two decision variables.(b) Solve the problem with the graphical solution procedure and define the optimum solution.
Management of the Toys R4U Company needs to decide whether to introduce a certain new novelty
toy for the upcoming Christmas season, after which it would be discontinued. The total cost required
to produce and market this toy would be $500,000 plus $15 per toy produced. The company would
receive revenue of $35 for each toy sold.
Assuming that every unit of this toy that is produced is sold, write an expression for the profit in terms
of the number produced and sold. Then find the break-even point that this number must exceed to
make it worthwhile to introduce this toy.
Now assume that the number that can be sold might be less than the number produced. Write an
expression for the profit in terms of these two numbers.
Formulate a spreadsheet that will give the profit in part b for any values of the two numbers.
Write a mathematical expression for the constraint that the number produced should not exceed the
number that can be sold.
Chapter 2 Solutions
Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
Ch. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QP
Ch. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 14QPCh. 2 - Prob. 15QPCh. 2 - Prob. 16QPCh. 2 - Prob. 17QPCh. 2 - Prob. 18QPCh. 2 - American Auto is evaluating their marketing plan...Ch. 2 - Prob. 20QPCh. 2 - Prob. 21QPCh. 2 - Prob. 22QPCh. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Prob. 25QPCh. 2 - Prob. 26QPCh. 2 - Prob. 1.1CCh. 2 - Prob. 1.2CCh. 2 - Prob. 1.3CCh. 2 - Prob. 1.4CCh. 2 - Prob. 1.5CCh. 2 - Prob. 1.6CCh. 2 - Prob. 1.7CCh. 2 - Prob. 1.8CCh. 2 - Prob. 1.9CCh. 2 - Prob. 1.10C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Your answer is partially correct. An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $5,200 and it will cost $1,300 per year to operate at the end of year that follows. She will keep the vehicle for 5 years; at the end of this period, the upgraded vehicle will have a salvage value of $3,800. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $9,800 and that there will be $4,100 due at lease signing. She further estimates that it will cost $2,900 per year to lease and operate the vehicle. The independent contractor's MARR is 11%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. 1943.56 EUAC(keep): $…arrow_forwardABC Corporation has recently given out a nine-month contract to a construction subcontractor. At the end of the first month, it becomes obvious that the subcontractor is not reporting costs according to an appropriate WBS level. ABC Corporation asks the subcontractor to change its cost reporting procedures. The subcontractor states that this cannot be done without additional funding. This problem has occurred with other subcontractors as well. What can ABC Corporation do about this?arrow_forwardM K gift store buys items for ₹65. At an original retail price of ₹89, it expects to sell 1,000 units. If the price is marked down to ₹79, how many units must the retailer sell to earn the same total gross profit it would attain with an ₹89 price? If the price is marked up to ₹99, how many units must the retailer sell to earn the same total gross profit it would attain with an ₹89 price?arrow_forward
- David works for Wool garments company as a production manager. He often participates in the annual budgeting process of the company. David is requested by the Chief Executive Officer Linda to submit his department’s budgeted production for the following year. Linda reviews and typically adds 10 percent to the production budget provide by David. The new amount becomes David’s target production level for the following year. David can receive a cash bonus if his department exceeds the projected production level. Explain any incentive that David might have to be dishonest with Linda about the production level he thinks the department can achieve.arrow_forwardA television station may either extend a current television show for another season or develop a completely new show for that time slot. It will cost $6M to develop the new show. The new show may be very successful, moderately successful, or not successful with associated advertising revenues of $25M, $15M, or $5M, respectively. If the station chooses to extend the current show, it will cost $2M. The extended show may be very successful, moderately successful, or not successful with associated advertising revenues of $15M, $10M, or $5M, respectively. Which of the following are true? A. There are a total of six branches in the entire decision tree. B. There are eight leaves or terminal nodes in the entire decision tree. C. There is one event node in the decision tree. D. None of the abovearrow_forwardWhich of the following statements is correct regarding the EMH form? Select one: None of the answers are correct If the market is weak-form efficient, then it is also semistrong and strong-form efficient. If the market is semistrong form efficient, then it is also strong form efficient If a market is strong-form efficient, it is also semistrong and weak form efficient If the market is strong-form efficient, it is also semistrong but not weak-form efficientarrow_forward
- A company is operating in two unrelated businesses. The first one is making common salt, which is sold in one kilogram consumer packs. The second business is making readymade garments. The owner of the businesses has decided to implement Materials Requirement Planning (MRP) in one of the two businesses, which is likely to give him greater benefit. Assuming that the current turnover and profits of both the units are comparable, compare the relative benefits and limitations of Materials Requirement Planning (MRP) for these two businesses.arrow_forwardeBay is the largest online auction site. Sellers pay a small fee to list their items, which can be soldat a fixed price or auctioned. Generally, the auction lasts several days, and the bidders submitelectronics bids. After the auction closes, the highest bidder receives an email and gets threebusiness days to contact the seller. eBay provides ratings on buyers and sellers based on theirpositive and negative comments. eBay has set up policies to guard against ‘feedbackmanipulation’ and ‘feedback abuse.’ eBay encouraged buyers to pay through ‘PayPal’ and‘PayPal’ provides $2000 free insurance in case the buyer doesn’t receive the product or the qualityof the product is poorer than expected. eBay’s safety staff investigates alleged misuses at eBay,such as fraud, trading offenses, and illegally listed items. A potential resolution is banning a sellerfrom future trading on eBay. 1. eBay claims that they have minor problems with fraud and misuse of the system. Does thisapplication…arrow_forwardHayworth Corporation has Just segmented last year's income statement into its ten product lines. The chief executive officer (CEO) is curlous as to what effect dropping one of the product lines at the beginning of last year would have had on overall company profit. What is the best number for the CEO to look at to determine the effect of this elimination on the net operating income of the company as a whole? Multiple Choice the product line's sales dollars the product line's contribution margin the product line's segment margin the product line's segment mergin minus an allocated portion of common fixed expensesarrow_forward
- Three methods can be used for producing heat sensors for high-temperature furnaces. Method A will have a fixed cost of $140,000 per year and a production cost of $62 per part. Method B will have a fixed cost of $210,000 per year and a production cost of $28 per part. Method C will require the purchase of equipment costing $500,000. It will have a life of five years and a 25% of first cost salvage value. The production cost will be $53 per part. At an interest rate of 10% per year, determine the breakeven annual production rate between the two lowest cost methods.arrow_forwardAndy’s Bicycle Company (ABC) has the hottest new product on the upscale toy market—boys’ and girls’ bikes in bright fashion colors, with oversize hubs and axles; shell design safety tires; strong padded frames; chrome-plated chains, brackets, and valves; and non-slip handlebars. Due to the seller’s market for high-quality toys for the newest baby boomers, ABC can sell all the bicycles it manufactures at the following prices: boys’ bikes, $220; girls’ bikes, $175. This is the price payable to ABC at its Orlando plant. The firm’s accountant, V. R. Dondeti, has determined that direct labor costs will be 45% of the price that ABC receives for the boys’ model and 40% of the price received for the girls’ model. Production costs, other than labor but excluding painting and packaging, are $44 per boys’ bicycle and $30 per girls’ bicycle. Painting and packaging are $20 per bike, regardless of model. The Orlando plant’s overall production capacity is 390 bicycles per day. Each boys’…arrow_forwardA NY Times best-selling author wants to write a new book as either volume II of her earlier successful book or an autobiography. She believes that by writing the volume II, given her previous success, she will have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. However, the worst-case scenario, if she can’t get a major publisher to take it, then she thinks there is 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand, if she writes an autobiography, considering the potential interest in her journey as successful writer, she thinks there will be 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If she can’t get a major publisher to take it, the worst-case scenario, she thinks there is a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies. Construct a decision tree to help this author…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,