Question
In: Statistics and Probability
3. The management of Madeira Computing is considering the introduction of a wearable electronic device with...
3. The management of Madeira Computing is considering the introduction of a wearable electronic device with the functionality of a laptop computer and phone. The fixed cost to launch this new product is $300,000. The variable cost for the product is expected to be between $160 and $240, with a most likely value of $200 per unit. The product will sell for $300 per unit. Demand for the product is expected to range from 0 to approximately 20,000 units, with 4,000 units the most likely.
a. Develop a what-if spreadsheet model computing profit for this product in the base-case, worst-case, and best-case scenarios.
b. Model the variable cost as a uniform random variable with a minimum of $160 and a maximum of $240. Model product demand as 1,000 times the value of a gamma random variable with an alpha parameter of 3 and a beta parameter of 2. Construct a simulation model to estimate the average profit and the probability that the project will result in a loss.
c. What is your recommendation regarding whether to launch the product?
Solutions
please
give me thumb up
orchestra answered 2 years agoRelated Solutions
The management of Madeira Computing is considering the introduction of a wearable electronic device with the...
The management of Madeira Computing is considering the
introduction of a wearable electronic device with the functionality
of a laptop computer and phone. The fixed cost to launch this new
product is $300,000. The variable cost for the product is expected
to be between $160 and $240, with a most likely value of $200 per
unit. The product will sell for $300 per unit. Demand for the
product is expected to range from 0 to approximately 20,000 units,
with 4,000...
The management of Madeira Computing is considering the introduction of a wearable electronic device with the...
The management of Madeira Computing is considering the
introduction of a wearable electronic device with the functionality
of a laptop computer and phone. The fixed cost to launch this new
product is $300,000. The variable cost for the product is expected
to be between $160 and $240, with a most likely value of $200 per
unit. The product will sell for $300 per unit. Demand for the
product is expected to range from 0 to approximately 20,000 units,
with 4,000...
The management of Madeira Manufacturing Company is considering the introduction of a wearable electronic device with...
The management of Madeira Manufacturing Company is considering
the introduction of a wearable electronic device with the
functionality of a laptop computer and phone. The fixed cost to
launch this new product is $300,000. The variable cost for the
product is expected to be between $160 and $240, with a most likely
value of $200 per unit. The product will sell for $300 per unit.
Demand estimates for the product vary widely, ranging from 0 to
20,000 units, with an...
The management of Madeira Manufacturing Company is considering the introduction of a wearable electronic device with...
The management of Madeira Manufacturing Company is considering
the introduction of a wearable electronic device with the
functionality of a laptop computer and phone. The fixed cost to
launch this new product is $300,000. The variable cost for the
product is expected to be between $160 and $240, with a most likely
value of $200 per unit. The product will sell for $300 per unit.
Demand estimates for the product vary widely, ranging from 0 to
20,000 units, with an...
its a statistic ASSIGNMENT The management of Madeira Manufacturing Company is considering the introduction of a...
its a statistic ASSIGNMENT
The management of Madeira Manufacturing Company is considering
the introduction of a new product. The fixed cost to begin the
production of the product is $3000 The variable cost for the
product is uniformly distributed between $16 and $24 per unit with
most likely value of $20 per unit. The product will sell for $50
per unit. Demand for the product is expected to range from 300 to
2100 units, with 1200 units the most likely...
The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed...
The management of Madeira Manufacturing Company is considering
the introduction of a new product. The fixed cost to begin the
production of the product is $32,000. The variable cost for the
product is expected to be between $19 and $28 with a most likely
value of $26 per unit. The product will sell for $45 per unit.
Demand for the product is expected to range from 300 to 1800 units,
with 900 units the most likely demand.
Let
c =...
Problem 12-14 (Algorithmic) The management of Madeira Manufacturing Company is considering the introduction of a new...
Problem 12-14 (Algorithmic) The management of Madeira
Manufacturing Company is considering the introduction of a new
product. The fixed cost to begin the production of the product is
$30,000. The variable cost for the product is uniformly distributed
between $16 and $24 per unit. The product will sell for $50 per
unit. Demand for the product is best described by a normal
probability distribution with a mean of 1,200 units and a standard
deviation of 300 units. Develop an Excel...
Problem 12-14 (Algorithmic) The management of Madeira Manufacturing Company is considering the introduction of a new...
Problem 12-14 (Algorithmic)
The management of Madeira Manufacturing Company is considering
the introduction of a new product. The fixed cost to begin the
production of the product is $36,000. The variable cost for the
product is uniformly distributed between $20 and $28 per unit. The
product will sell for $56 per unit. Demand for the product is best
described by a normal probability distribution with a mean of 1,200
units and a standard deviation of 100 units. Develop an Excel...
A firm must purchase an electronic control device. Device A costs $10,000 and lasts for 3...
A firm must purchase an electronic control device. Device A
costs $10,000 and lasts for 3 years. Annual maintenance costs in
each of the years are $1,800 $1,400 and $1,300 respectively. Device
B costs $15,000 and lasts for 4 years. Annual maintenance costs in
each of the years are $1,700, $1,100, $1,070, and $1,100
respectively. These two devices service the same purpose (i.e., are
mutually exclusive) and the firm needs to use this device for its
day-to-day operations. If the...
12. Average Steps Taken A Personal Fitness Tracker is a wearable device that tracks your physical...
12. Average Steps Taken
A Personal Fitness Tracker is a wearable device that tracks your
physical activity, calories burned, heart rate, sleeping patterns,
and so on. One common physical activity that most of these devices
track is the number of steps you take each day.” The steps.txt file
contains the number of steps a person has taken each day for a
year. There are 365 lines in the file, and each line contains the
number of steps taken during a...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
- Topic - Construction: Structural, loads, tension 1.) Explain why pure tension members are the most efficient...
- Procter and Gamble (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG...
- locate a recent case of online child pornography. Write a summary of the incident and describe...
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
- Suggest journal, research paper link reference. i need this as reference for writing a research with...
- Cryptography is used heavily in internet communications. True or false? Explain
ADVERTISEMENT