1. Lab Week 1 Problem Solutions

1. Lab Week 1 Problem Solutions - 1 b. -- = quantity * unit...

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Lab Week 1 Problem Solutions CHAPTER 1 INTRODUCTION TO MANAGEMENT SCIENCE PROBLEMS 1. a. The model decision variables are: x 1 = units usage of radio advertising x 2 = units usage of TV channels advertising x 3 = units usage of newspaper advertising medium x 4 = units usage of direct mails advertising medium x 5 = units usage of e-mails advertising medium b. The model parameters are: 7,000: number of potential buying customers reached per unit usage of radio advertising medium 50,000: number of potential buying customers reached per unit usage of TV channels advertising medium 18,000: number of potential buying customers reached per unit usage of newspaper advertising medium 34,000: number of potential buying customer reached per unit usage of direct mails advertising medium 90,000: number of potential buying customer reached with per unit usage of e- mails advertising medium 3. Break-even volume and profit analysis for a tune-up service shop. a. unit per ts cos iable var unit per revenue ts cos fixed Q BEP - = 45 . 334 95 . 14 5000 10 95 . 24 5000 = = - = BEP Q tune-ups
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Unformatted text preview: 1 b. -- = quantity * unit t cos iable var ts cos fixed quantity * Unit revenue profit 10 * 375 5000 95 . 24 * 375--= profit 25 . 606 $ = profit c. 51 . 502 95 . 9 5000 15 95 . 24 5000 = =-= BEP Q tune-ups d. 43 . 446 20 . 11 5000 15 %) 5 1 ( 95 . 24 5000 = =-+ = BEP Q tune-ups + = quantity unit t iable ts fixed ts total * cos var cos cos = 5000 + 375 15 = $10625 94 . 800 $ 15 375 5000 %) 5 1 ( 95 . 24 375-= --+ = profit 14. a. Break-even volume: unit per ts cos iable var unit per revenue ts cos fixed Q BEP-= 82 . 1780 5 . 36 000 , 65 5 . 8 45 000 , 65 = =-= BEP Q = 1781 copies b. profit = revenue total cost = 45*3500 65,000 - 8.5*3500= $62,750 c. Break-even volume: unit per ts cos iable var unit per revenue ts cos fixed Q BEP-= =3,500 08 . 27 $ ) 5 . 8 ( * 500 , 3 000 , 65 500 , 3 5 . 8 000 , 65 =-= =-copy per price copy per price copy per price 2...
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1. Lab Week 1 Problem Solutions - 1 b. -- = quantity * unit...

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