Homework 3 Answers - Homework#3 — Due Chapter 8 Use the...

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Unformatted text preview: / Homework #3 — Due 10/07/08 Chapter 8 Use the following information for questions 1-3 After purchasing printed T—shirts for events on campus over the last several years, you start to think about making some money for yourself. You look into buying equipment that prints T-shirts and find that there are two options. Option 1 costs more up front, but it takes less time to print each T-shirt, resulting in a lower variable cost. Option 2 costs less up front, but takes more time to print each T-shirt, resulting in a higher variable cost. The basic information is below: Fixed Cost Variable Cost (per Unit) Option 1 $10,000 $3 Option 2 $2,000 $7 1. What would the cost of each option be if you sold 500 T-shirts? Which option would you choose? < 010+.“ 1" FC +VC'X: f[0100,94"'3«*‘§00 2' ll,§op Opti‘wf F6 + V6 * K r ‘Low first» : (9(00 C hook 0/04“?) n 02 What would the cost of each option be if you sold 4,000 T-shirts? Which option would you choose? [Most 0/1929’1 1 What is the indifference point (determine the number of T-shirts where the cost of the two Options is equal)? FCMVC.” : ch VCL*X :2) 501% 7[M X {IO/00,9 1" 53X : {1900 +571: 8,000 I ‘7’x X: 2,000 T" Shir-F5 ( Bo’fla 0’04—(043 (95+ ‘/L,000 +0 [Hak‘ 2,000 T‘Sk.‘l+g> 2. You are really not sure of how many T-shirts you can sell, so you decide to assign some probabilities to the demand. You predict the following: T-Shirt Sales Probability 1 .000 25% 2,500 45% 3, 500 30% Based on this prediction, draw the decision tree for Options 1 and 2. Make sure to draw and calculate each of the branches on the decision tree (i.e. cost of Option 1 for 1,000, 2,500 and 3,500). Also calculate the expected value (demand outcome) of the two branches. Based on the expected value, would you choose Option 1 or Option 2? 6 {4.5: (000 (25%)» 10.0% ‘Mm : ‘z 3,000 W Jam: L§Oo (Yf7o {/0 000 + 5 Z “257/0 3 ’17, $00 ‘ édefi’ggod/3O7p 1[0000 t 43 In; {00 : 20 S00 EV: 317/275. Ev: ‘(3’000 ”.Z{ fJ’);Yw’¢'/€ + fizolgo‘) I: .30 éelecf ‘1,000+"7I¢ [0,9,9 : ’7 009 flp+ma 7 Ov‘f come ‘10a0+‘7“ 3(00 75lé,§00 ew‘IZfl-Ir ; ‘ Eu> 7,000x,15+ *l?,f0uX.VS* M9500 ”30 Ckao» 0p+foa 1 3. For Options 1 and 2, if you could sell each T-shirt for $11, what is your breakeven point? t’ 0 By? = FC‘ : (’000 : lzs’o T»SH:r+r ‘ R'VC‘ ‘/"‘3 PC? ‘1 000 4“(("7 4. You are running a J iffieLube oil change center. On average, the center can service 12 customers per hour and 10 customers arrive every hour. ) ,7 a f r 5 ”J fat-c ; ,0 c vs; N1 , What is the average utilization? J“ t s“ ”’l‘e ”J" T i 7* U’d/hr / a ~.L...,, 9 Fifi ’ ’ 33.3%; l'L What is the average number of customers waiting in the waiting line? )‘ w‘ _ Z ’ 7’7 Cus-fon-Lcr; What is the average number of customers in the waiting line system? \I - A 0 CS ,fl : —-’-"“"’ g cust'omcrg hr «10 What is the average time spent waiting in the waiting line? A ,ML—— - ; : I, H» ;= ng.w+“ T‘" «Mir/ll "((1403 L“ M What is the average time spent in the waiting line system? - 4.- #1,..- _ .u T5- [(4—1 ’ (7,-” ’ ,glvwrs ’ 30 flux: 14:; 5. A new employee at JiffieLube changes the oil on the first car in 30 minutes. She changes the oil in the next car in 24 minutes. 5“ 722%: M New 237 What is her learning rate? _ 0 Laék/‘lek, [eraJI'C ' 3" MUN/Hg ' .30 ’ X0 /o How long will it take her to change the oil in the 10th car? Tn : 7" {\L :> 7—“, : Bani-«2415" .7771 “4-3! Inf-“14¢: How long will it take her to change the oil in the first 20 cars? g7: > T, x én“ :5 £710: 3amnuks X MJ/Z’J’ : 3’V-55m‘m‘rs ...
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