Stor. Assign. 19

Stor. Assign. 19 - Month 2 Price 12 Month 3 Price 3 Shirt...

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Inputs Initial Demand 3833.61 Demand Increase/ Month 0.02 Widget Cost 3 Cost Decrease/ Month 0.01 Widget Price 4 Month Increase in Demand Monthly Revenue 1 3833.61 76.67 15334.43 2 3910.28 78.21 15641.11 3 3988.48 79.77 15953.94 4 4068.25 81.37 16273.02 5 4149.62 82.99 16598.48 6 4232.61 84.65 16930.45 7 4317.26 86.35 17269.05 8 4403.61 88.07 17614.44 9 4491.68 89.83 17966.72 10 4581.51 91.63 18326.06 11 4673.14 93.46 18692.58 12 4766.61 95.33 19066.43 Outputs Total Revenue 205666.7 Total Cost 130666.71 Profit 74999.99 If my company produced the widgets ourselves we would earn a profit of $97,819, which is better th In order for this decision to be reversed, the initial demand would have to be changed to 3833. Initial Demand For the Month
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Monthly Cost Decrease in Cost 11500.82 115.01 11385.81 113.86 11271.95 112.72 11159.23 111.59 11047.64 110.48 10937.17 109.37 10827.79 108.28 10719.52 107.2 10612.32 106.12 10506.2 105.06 10401.14 104.01 10297.12 102.97 han the $75,000 the other company would pay us. Therefore, we should produce the widgets ourse
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elves.
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Inputs Month 1 Demand 18000 Month 2 Demand 5000 Month 3 Demand 2000 Month 1 Price 25
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Unformatted text preview: Month 2 Price 12 Month 3 Price 3 Shirt Cost 8 Shirts Ordered 25000 Month Demand Revenue Cost 1 18000 450000 144000 2 5000 60000 40000 3 2000 6000 16000 Outputs Total Revenue 516000 Total Cost 200000 Profit 316000 If he orders 25000 shirts, his profit would be $316000. If he orders 18000 shirts, his profit would be $372000. If he orders 30000 shirts, his profit would be $276000. Inputs Initial Sales 2000 Sales Decrease/ Year 0.1 Device Cost 1200 Device Cost Decrease/ Year 0.05 Initial Price 1500 Reduced Price 1125 Year Initial Sales for Month Annual Revenue 1 2000 200 3000000 2 1800 180 2700000 3 1620 162 2430000 4 1458 145.8 1640250 5 1312.2 131.22 1476225 Outputs Total Revenue 11246475 Total Cost 10858515 Profit 387960 Under these circumstances, total profit for the 5 years is expected to be $387,960. Decrease in Sales Annual Cost Decrease in Cost 2400000 120000 2280000 114000 2166000 108300 2057700 102885 1954815 97740.75...
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This note was uploaded on 06/07/2011 for the course STOR 112 taught by Professor Rubin,david during the Fall '06 term at UNC.

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Stor. Assign. 19 - Month 2 Price 12 Month 3 Price 3 Shirt...

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