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Brilliant_brown [7]
2 years ago
12

The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The

selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:
Procurement
Cost ($) Probability Labor Cost ($) Probability Transportation
Cost ($) Probability
10 0.25 20 0.1 3 0.75
11 0.45 22 0.25 5 0.25
12 0.3 24 0.35 25 0.3 (a) Compute profit per unit for base-case, worst-case, and best-case.
Profit per unit for base-case: $
Profit per unit for worst-case: $
Profit per unit for best-case:$
(b) Construct a simulation model to estimate the mean profit per unit.
If required, round your answer to the nearest cent.
Mean profit per unit =
(c) Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios?
(d) Management believes that the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability the profit per unit will be less than $5.
If required, round your answer to a one decimal digit percentage.
Business
1 answer:
Furkat [3]2 years ago
5 0

The calculated profit per unit for base-case, worst-case is, and best-case for the management of Brinkley corporation is:

  • $7
  • $3 per unit
  • $3 per unit

<h3>The Profit per unit for base-case:</h3>

45 - 1 1- 24 - 3 = $7

<h3>Profit per unit for worst case:</h3>

45 - 12 - 25 - 3 = $3 per unit

<h3>Profit per unit for best case:</h3>

45 - 10 - 20 - 3 = 12$ per unit

b. The mean profit per unit is given as $7.05

c. The reason the simulation approach is preferable is due to the fact that it can help to determine the probability of profit as a particular amount, unlike the what-if scenario analysis.

It can also create different scenarios for possible resources.

d. The probability of the fact that the profit per unit woul  be less than 5 is 9%

Read more on risk analysis here: brainly.com/question/6955504

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A factory produces product A according to the production function QA = 100XA, where XA denotes the amount of input and QA is the
Ostrovityanka [42]

Answer:

Option (B) is correct.

Explanation:

XA + XB = 100

QA = 100XA

QB = 200XB - XB^2

Use the fact that,

XA = 100 - XB

Now total production is Q = QA + QB

Q = 100XA + 200XB - XB^2

Q = 100 × (100 - XB) + 200XB - XB^2

Q = 10,000 + 100XB - XB^2

Output is maximum when Q'(XB) = 0

100 = 2XB = 0

XB = 50

XA = 50

Therefore, the firm’s profit-maximizing allocation of input X is 50 units of XA and 50 units of XB.

5 0
3 years ago
Your portfolio is 310 shares of Callahan, Inc. The stock currently sells for $101 per share. The company has announced a dividen
Veseljchak [2.6K]

Answer:

$31,240

Explanation:

Calculation for what is your portfolio value as of April 19

Using this formula

Portfolio value= Stock value + Cash

Let plug in the formula

Portfolio value = [(310 shares× ($101 -3.20))+ (310 shares × $3.20) ]

Portfolio value = [(310*97.80)+922)]

Portfolio value=$30,318+$922

Portfolio value=$31,240

Therefore your portfolio value as of April 19 will be $31,240

5 0
3 years ago
ACME labs bought a new inspection device for $182,730. The accounting department has estimated that the device will have an annu
enyata [817]

Answer:

salvage value is $16,368.34

Explanation:

given data

initial cost = $182,730

annualized capital cost = $42,442

service life = 7 year

interest rate = 15%

solution

we get here first present value that is

annual value  = rate ×  \frac{present\ value}{(1 - (1+ r)^{-t})}       .................1

put here value and we get

42,442 = 15% ×  \frac{present\ value}{(1 - (1+ 0.15)^{-7})}

solve it we get

present value = $176,576.5343  

so

present value = initial investment + salvage value     ..............2

we take here present value and initial investment will be negative

-176,576.5343 = -182,730 + salvage value(p/f,15%,7)  

-176,576.5343 +182,730 = salvage value(p/f,15%,7)

6,153.465 = salvage value × 0.3759

salvage value = 16,368.34

3 0
3 years ago
Explain how a price system moves a market toward the quilibrium price
lions [1.4K]

Answer:

By setting the price of goods and services at a level where the suppliers and consumers feel comfortable, the quantity of goods and services supplied will be the same as the quantity of goods demanded.

Explanation:

A price system is a means of arranging economic activities by setting the standard prices of goods and services in that particular economy. In this way the agents of demand and supply can have an estimate of the price of various goods and services. In this way, a supplier who doesn't know the price of a goods or service that he/she plans to sell to a different country or region can use the price system to adjust their selling price effectively. On the same note, the consumers can also acquire goods and services that they have never demanded before by using the price system to determine the standard prices for those goods or services.  

Prices are a reflection of the consensus between suppliers and consumers about the value of goods and services. The equilibrium price can be defined as the price where the quantity of goods supplied equals the quantity demanded. By setting the price of goods and services at a level where the suppliers and consumers feel comfortable, the quantity of goods and services supplied will be the same as the quantity of goods demanded.

8 0
3 years ago
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