Quantitative_methods_ Assignment1.docx - Problem solutions 1 I Chicken eggs BEP Fixed cost = 560 20 Selling price per unit = 5 Variable cost per unit =

Quantitative_methods_ Assignment1.docx - Problem solutions...

This preview shows page 1 - 3 out of 5 pages.

Problem solutions 1. I. Chicken eggs BEP Fixed cost = 560 + 20 Selling price per unit = 5 Variable cost per unit = 14 pellets for 7 dozens (84 eggs ) = 2 per dozen BEP = 580 / 5-2= 193.33 = 193 dozen 193 dozen is the BEP for chicken eggs Duck eggs BEP Fixed cost = 620 + 20 Selling price per unit = 6 Variable cost = 14 pellets for 9 dozen = 1.5 per dozen BEP = 640 / 6-1.55 = 143.8 = 144 dozen (After roundoff) II. In one month if the chicken started laying eggs immediately then 84 eggs/12 = 7 dozens , which will give profit of $35 Chicken egg will give profit of 35 -14 (food) - fixed cost $580 duck profit will be $54 - $14 (food)- fixed cost of $640 $21X-$580 = $40X-$640 19X=60 X=3.16(rounded off value) So at 3.16 months the profit from chicken eggs will be equal to profit from ducks eggs. 2. Payoff table Demand Order 50 60 70 50 1500 1500 1500 60 1300 1800 1800 70 1100 1300 2100
Image of page 1
Probability 0.4 0.5 0.1 Calculating EMV for each option EMV(50)= 1500 EMV(60)= 1600 EMV(70)= 1300 The highest profit 1600 corresponds to 60 Units . Hence 60 units should be ordered. 3. a) Payoff Table Mileage Options 36,000 45,000 54,000 Option 1 11,800 11,800+(9000*0.35) = 14,950 18,100 Option 2 13,680 13,680 15930 Option 3 15,480 15,480 15,480 Probability 0.4 0.3 0.3
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 5 pages?

  • Winter '18

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors