Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern
Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that
demand.
Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the
size of the new plant. The following data have been collected:
Plant
ITT
Thousands of Gallons Sold (X)
434.7
Cost per Thousand Gallons (Y)
1
$1,024
2
962
466.4
3
1,065
1,006
1,045
1,068
251.3
372.1
5
245.0
6.
258.6
7
988
614.9
414.0
8
997
9
1,063
1,000
$10,218
267.5
380,4
3,704.9
10
Total
a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced.
The forecasting model…
Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern
Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that
demand.
Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the
size of the new plant. The following data have been collected:
ITT
Cost per Thousand Gallons (Y)
$1,024
Thousands of Gallons Sold (X)
434.7
Plant
962
466.4
251.3
372.
1,065
1,006
1.045
245.0
258.6
1,068
988
997
1,063
1,000
$10.218
614.9
414.0
267.5
380,4
3 704 9
9
10
Total
a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced.
The forecasting model is given by the…
Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern
Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that
demand.
Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the
size of the new plant. The following data have been collected:
ITT
Plant
1
Cost per Thousand Gallons (Y)
$1,024
Thousands of Gallons Sold (X)
434.7
2
962
466.4
3
1,065
1,006
1,045
1,068
251.3
372.1
5
245.0
258.6
614.9
7
988
8.
997
414.0
267.5
380.4
3,704.9
9
1,063
1,000
$10,218
10
Total
a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced.
The forecasting model is…
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
- The following information was gathered by the Budget Committee Chairman of ABC Corporation: ABC Co. produces and sells only one product. The selling price during the budget period is expected to be the prevailing price of ₱7.50 per unit. The company expects to sell 112,500 units of the product during the period. The desired finished goods inventory at the end of the period is 75,000 units while the expected beginning inventory is 62,500 units. Direct labor is ₱4.50 per hour. Each product requires 30 minutes to complete. Factory overhead is applied to production on the basis of direct labor hours. Variable factory overhead cost at the planned level of operations is budgeted at ₱49,800. Fixed budgeted overhead is ₱149,400. Each unit of product requires 1.5 kgs. of raw materials. Only one kind of raw material is used and it is expected to cost ₱0.30 per kilo. The desired ending inventory of raw materials is 12,000 kgs. the expected beginning inventory is 9,500 kilograms. Variable selling…arrow_forwardTrips Logistics, a third-party logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to lease for the upcoming three-year period. The general manager has forecast that Trips Logistics will need to handle a demand of 100,000 units for each of the next three years. Historically, Trips Logistics has required 1,000 square feet of warehouse space for every 1,000 units of demand. For the purposes of this discussion, the only cost Trips Logistics faces is the cost for the warehouse. Trips Logistics receives revenue of $1.22 for each unit of demand. The general manager must decide whether to sign a three-year lease or obtain warehousing space on the spot market each year. The three-year lease will cost $1 per square foot per year, and the spot market rate is expected to be $1.20 per square foot per year for each of the three years. Trips Logistics has a discount rate of k = 0.1.arrow_forwardDr. David Paul is a medical doctor at a small private hospital in XYZ city. He sits on the Board of Directors of the Hospital. He is also head of the Neurology Department.The hospital is undercapitalized, and they are having a board meeting to approve the budget. He requires a new MRI machine. However, the cost of the machine will impact the budget and ultimate profit of the hospital. Explain in no more than 250 words, the potential conflict of interest at the board meeting.arrow_forward
- A firm that plans to expand its product line must decide whether to build a small or a large facilityto produce the new products. If it builds a small facility and demand is low, the net present valueafter deducting for building costs will be $400,000. If demand is high, the firm can either maintainthe small facility or expand it. Expansion would have a net present value of $450,000, and maintaining the small facility would have a net present value of $50,000.If a large facility is built and demand is high, the estimated net present value is $800,000. If demandturns out to be low, the net present value will be – $10,000.The probability that demand will be high is estimated to be .60, and the probability of low demandis estimated to be .40. 1- Compute the EVPI 2- Determine the range over which each alternative would be best in terms of the value of P ( low demand )arrow_forwardDr. Lillian Fok, a New Orleans psychologist, specializes in treating patients who are agoraphobic (i.e., afraid to leave their homes). The following table indicates how many patients Dr. Fok has seen each year for the past 10 years. It also indicates what the robbery rate was in New Orleans during the same year: Year 2 3 4 7 8 9. 10 Number of Patients 35 32 41 42 40 54 60 55 58 61 Robbery Rate per 1,000 Population 57.8 60.6 73.4 75.7 78.5 89.0 101.1 95.4 104.1 115.6 The simple linear regression equation that shows the best relationship between the number of patients and the robbery rate is (round your responses to three decimal places): y = 0.817 + 0.552 x where y = Number of Patients and x = Robbery Rate. In year 11, if the robbery rate increases to 133.40, using trend analysis, the number of patients Dr. Fok will see = 74.45 patients (round your response to two decimal places). In year 11, if the robbery rate decreases to 88.5, using trend analysis, the number of patients Dr. Fok…arrow_forwardLaura is the associate director of a nonprofit agency that aids children and families. She is the head of a department that focuses on evaluating the skill-building programs the agency provides to families. She reports directly to the agency leadership. Overall, the agency has been cautious in hiring this year because of increased competition for federal grant funding. However, they have also suffered high staff turnover. Two directors, three key research staff, and one staff person from the finance department have left. Laura has a demanding schedule that requires frequent travel; however, she supervises two managers who in turn are responsible for five staff members each. Both managers have been appointed within the last six months. Manager 1: Kelly has a specific background in research. She manages staff who provide research support to another department that delivers behavioral health services to youth. Kelly supports her staff and is very organized; however, she often takes a very…arrow_forward
- Donald Harris received a windfall and needs to invest it for tax reasons. He went to his brother-in-law, Joe Harris, who is a financial advisor. Joe prepared a matrix that illustrated the possible returns on investment for different investment strategies under different economic conditions. That matrix is given below. Given these values, what type of investment strategy would be selected by the Maximincriterion? Future Air Traffic Strategies Major Downturn Downturn Upturn Major Upturn Contrarian 20% 10% 5% -15% Risk Averse 2% 4% 7% 10% Growth -10% -8% 13% 20% Aggressive -25% -20% 11% 35% Group of answer choicesarrow_forwardDr. Lillian Fok, a New Orleans psychologist, specializes in treating patients who are agoraphobic (i.e., afraid to leave their homes). The following table indicates how many patients Dr. Fok has seen each year for the past 10 years. It also indicates what the robbery rate was in New Orleans during the same year: Year Number of Patients Robbery Rate per 1,000 Population 1 37 58.3 2 3 4 33 41 41 60.6 73.0 75.7 5 42 81.1 The simple linear regression equation that shows the best relationship between the number of patients and year is (round your responses to three decimal places): ŷ=+x where y = Dependent Variable and x = Independent Variable. 6 7 8 9 10 56 58 53 59 60 89.0 101.5 94.8 104.1 117.2 Xarrow_forwardOhio Swiss Milk Products manufactures and distributes icecream in Ohio, Kentucky, and West Virginia. The companywants to expand operations by locating another plant innorthern Ohio. The size of the new plant will be a function ofthe expected demand for ice cream within the area served bythe plant. A market survey is currently under way to deter-mine that demand.Ohio Swiss wants to estimate the relationship between themanufacturing cost per gallon and the number of gallonssold in a year to determine the demand for ice cream and,thus, the size of the new plant. The following data have beencollected:a. Develop a regression equation to forecast the cost per gal-lon as a function of the number of gallons produced. b. What are the correlation coefficient and the coefficient ofdetermination? Comment on your regression equation inlight of these measures.c. Suppose that the market survey indicates a demand of325,000 gallons in the Bucyrus, Ohio area. Estimate themanufacturing cost per gallon…arrow_forward
- Using the grid technique to determine the least-cost location (warehouse) for this problem: Tons Rate X - Coordinates Y – Coordinates S1 200 0.5 2 14 S2 300 0.6 6 10 M1 100 1 2 2 M2 100 2 10 14 M3 100 1 14 18 M4 100 2 14 6 The Grid center coordination is ____ and _____ (round the results to 1 decimal place) Group of answer choices (9.9; 7.8) (5.5; 6.9) (8.7; 10.5) (10.5; 6.4) (9.9; 8.9)arrow_forwardOperation managementarrow_forwardLake Stevens Marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30 . The selling price per dollar of sales is: $1.00 Determine the effect on the break-even point in sales dollars considering each of the following independently. 1. Total fixed costs increase to $365,000. Break-even point = ÷ = 2. Variable costs decline to $0.25 per sales dollar. Break-even point = ÷ = 3. The anticipated sales volume increases to $1,100,000. Break-even point = ÷ = Comment on the BEPs from the above analyses in questions 1,2,3.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON