MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter C, Problem 13P
Summary Introduction
Interpretation:Using the payoff matrix, the number of hot dogs to buy for the game is to be calculated.
Concept Introduction: Probability refers to describing the possibility of how likely an event would be true than not, numerical. Sale is exchanging of withheld goods or services for money.
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Students have asked these similar questions
Roger Co. implemented activity-based costing in the current year. To select the appropriate driver for Cost Pool A, Roger performed regression analyses for two
independent variables, Driver 1 and Driver 2, using monthly operating data. The monthly levels of Cost Pool A were the dependent variables in both regressions.
Output results from the regression analyses were as follows:
Driver 1
R squared
Intercept
X variable (slope)
At the budgeted production level for next month, the levels of Driver 1 and Driver 2 are expected to be 5,880 and 7,000, respectively. Based on this information,
what is the budgeted amount for Cost Pool A for next month?
O A. $3,280
OB. $2,624
O C. $3,464
O D. $3,785
0.46
$551.00
Driver 2
$0.55
0.80
$970.00
$0.33
a) For an upcoming red carpet evening, a company is selling tickets at $60 per person at a large theatre which has a capacity of 10,000 people. Each attendant is expected to buy $12 of food and merchandise at the film evening. The cost of providing the food and merchandise is estimated to be $5 per person. All other ancillary services will be provided by the theatre. Initial analysis indicates that the ancillary cost of providing food and merchandise, as well as the staff needed to handle ticket sales, may be described as a semi-variable cost. Data on these costs and tickets sold from three similar events held at the venue have been collected and are tabulated below:
Tickets Sold
Cost ($)
2100
6640
3824
11284
4650
13525
Use the high-low method to estimate the total cost function relating to these ancillary costs.
b) The company will be renting the theatre which will host the upcoming red carpet evening. The budgeted fixed cost of both renting the theatre and paying the…
The Aggies will host Tech in this year's homecoming football game. Based on advance ticket sales, the athletic department has forecast hot dog sales as shown in the
following table:
TT
Sales Quantity Probability
1,000
2,000
3,000
4,000
5,000
0.10
0.20
0.30
0.20
0.20
The school buys premium hot dogs for $1.60 and sells them during the game at $2.80 each. Hot dogs left over after the game will be sold for $0.60 each to the Aggie
student cafeteria to be used in making hotdog casserole.
Use a payoff matrix to determine the number of hot dogs to buy for the game.
hot dogs. (Enter your response as an integer.)
Chapter C Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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