Question
In: Statistics and Probability
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 average of 4000 units.
a. Compute profit for the base-case, worst case, and best-case
scenarios
b. Assume the variable cost is a uniform random variable between
$16 and $24 and the product demand is a normal random variable with
a mean of 4000 units and standard deviation 750
units. Construct a simulation model to estimate the mean
profit and the probability that the project will result in a loss.
NOTE: For Part B, let product demand be a NORMAL random
variable with mean 4,000 units and standard deviation 750 units. Do
not use exponential random variable.
Solutions
orchestra answered 1 year agoRelated Solutions
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...
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...
Consider a typical electronic device manufacturing Organization: a) Describe Sales Cycle in such an organization in...
Consider a typical electronic device manufacturing
Organization:
a) Describe Sales Cycle in such an organization in terms of
transaction processing
. • Identify at least three pieces of information required
between each sequential pair of transactions (activities of the
cycle)
IMPORTANT********Note: You also use a diagram to list
the activities and the information passed between
activities.*********
Relax Company manufactures and sells an electronic device to automobile manufacturers. The device intimates the car...
Relax Company manufactures and sells an electronic
device to automobile manufacturers. The device intimates the car
user about the service status. Following data
relates to the Relax Company for the year ended on December 31,
2019:
Total $
Sales
2,400,000
Less variable costs
1,800,000
Contribution margin
600,000
Less Fixed Costs
250,000
Net Operating income
350,000
During 2019, company’s selling price per unit and
variable cost per unit has been $60 and $40
respectively.
Calculate:
CM per unit
Variable costs...
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