Exam%201%20Quantitative%20Review

# Exam%201%20Quantitative%20Review - Exam 1 Quantitative...

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Clark – Copyright © 2011 p. 1 Exam 1 Quantitative Review BIT 3414 These problems are provided for additional practice of the quantitative material on exam 1. These problems are not designed to indicate the number, proportion, or difficulty level of the problems on the exam. Not all of the quantitative material covered by exam 1 has been included in this practice. The Innisbrook Company has 3 options for a new production process for product X. The costs associated with each option vary, depending on the level of process automation as shown in the following table. Process A B C Equipment cost (\$) 40,100 24,500 110,500 Labor & material cost/unit (\$) 60 75 40 The company believes it can sell each unit of product X for \$125. 1. What is the break-even volume if the company selects process A for production? a. 668 b. 617 c. 217 d. 1040 e. 1052 2. For what forecasted volume of demand is process C the best process? a. 891 < v < 2457 b. v > 2457 c. 2457 < v < 3520 d. v > 1040 e. v > 3520 f. 1040 < v < 3520 g. 1040 < v < 4693

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Clark – Copyright © 2011 p. 2 3. The company has chosen to use process A. After one year of production with process A, the company has produced and sold 1820 units of product X. How much profit has the company made this first year? a. \$78,200 b. \$109,200 c. \$187,400 d. \$118,300 e. none, the company operated with a loss the first year Carl wants to go to his local country club to play tennis. The club offers two options to play: 1) Carl can buy a one year membership for \$2200 which provides 60 free visits to the club and each visit after 60 costs \$15 each 2) Carl can just pay a guest fee of \$35 each time he wants to visit the club. He does not need to purchase any membership for this option. 4. Carl should buy a membership if he plans on more than ____ visits each year. a. 60 b. 110 c. 75 d. 84 e. 65
Clark – Copyright © 2011 p. 3 The Rogers Manufacturing Company can purchase component Y from 3 potential suppliers.

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## This note was uploaded on 11/21/2011 for the course BIT 3134 taught by Professor Clark during the Fall '11 term at Virginia Tech.

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Exam%201%20Quantitative%20Review - Exam 1 Quantitative...

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