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In: Statistics and Probability
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 worksheet simulation for this problem. Use 500 simulation trials to answer the following questions: What is the mean profit for the simulation? Round your answer to the nearest dollar. Mean profit = $ What is the probability that the project will result in a loss? Recalculate the numerical value of probability in percent and then round your answer to the nearest whole number. Probability of Loss = % What is your recommendation concerning the introduction of the product? The input in the box below will not be graded, but may be reviewed and considered by your instructor.
Solutions
orchestra answered 1 year agoRelated Solutions
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...
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 =...
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 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...
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...
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...
Problem 15-33 (Algorithmic) Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This...
Problem 15-33 (Algorithmic)
Kolkmeyer Manufacturing Company is considering adding two
machines to its manufacturing operation. This addition will bring
the number of machines to nine. The president of Kolkmeyer asked
for a study of the need to add a second employee to the repair
operation. The arrival rate is 0.06 machines per hour for each
machine, and the service rate for each individual assigned to the
repair operation is 0.5 machines per hour.
Compute the operating characteristics if the company...
Problem 15-33 (Algorithmic) Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This...
Problem 15-33 (Algorithmic)
Kolkmeyer Manufacturing Company is considering adding two
machines to its manufacturing operation. This addition will bring
the number of machines to ten. The president of Kolkmeyer asked for
a study of the need to add a second employee to the repair
operation. The arrival rate is 0.07 machines per hour for each
machine, and the service rate for each individual assigned to the
repair operation is 0.6 machines per hour.
Compute the operating characteristics if the company...
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