8. Portab. electronics manufacturer is considering developing a new portable printer. Their preliminary analysis has determined...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
8. Portab. electronics manufacturer is considering developing a new portable printer. Their preliminary analysis has determined the first-year selling price, administrative cost, and advertising cost as follows: Selling price $320 Administrative cost = $650,000 Advertising cost $800,000 The cost of labor, the cost of parts, and the first year demand will be probabilistic inputs to the analysis with estimated ranges as: Direct labor cost per unit could range from $35 to $41 Parts cost per unit could vary from $60 to $90 First year demand could vary from 1,000 to 20,000 = a. Please calculate profit for the best and worst case scenarios and average profit for the two cases. [2 points] I b. Calculate the minimum profit, maximum profit, average profit, and its standard deviation by performing a simulation with 40 replications under the following assumptions. Parts cost could randomly vary between $60 and $90. Demand has a normal distribution with a mean of 10,000 and standard deviation of 2,000. Direct labor costs follow the following probability distribution. Labor Cost Per Unit 35 36 37 38 39 40 41 Frequency 0.05 0.25 0.30 0.20 0.10 0.08 0.02 c. Suppose the advertising expenditure is increased to $1,200,000 as a result of which demand would shift up to new level with an average value of 15,000 and the same standard deviation as before (2,000). Please conduct the simulation again and compare your new results with the results you obtained under b in terms of minimum profit, maximum profit, average profit, and standard deviation. Does it seem that the additional spending on ads is paying off? [4 points] Note: Please submit printouts of all the tables with your results as part of your solution for this problem. I 8. Portab. electronics manufacturer is considering developing a new portable printer. Their preliminary analysis has determined the first-year selling price, administrative cost, and advertising cost as follows: Selling price $320 Administrative cost = $650,000 Advertising cost $800,000 The cost of labor, the cost of parts, and the first year demand will be probabilistic inputs to the analysis with estimated ranges as: Direct labor cost per unit could range from $35 to $41 Parts cost per unit could vary from $60 to $90 First year demand could vary from 1,000 to 20,000 = a. Please calculate profit for the best and worst case scenarios and average profit for the two cases. [2 points] I b. Calculate the minimum profit, maximum profit, average profit, and its standard deviation by performing a simulation with 40 replications under the following assumptions. Parts cost could randomly vary between $60 and $90. Demand has a normal distribution with a mean of 10,000 and standard deviation of 2,000. Direct labor costs follow the following probability distribution. Labor Cost Per Unit 35 36 37 38 39 40 41 Frequency 0.05 0.25 0.30 0.20 0.10 0.08 0.02 c. Suppose the advertising expenditure is increased to $1,200,000 as a result of which demand would shift up to new level with an average value of 15,000 and the same standard deviation as before (2,000). Please conduct the simulation again and compare your new results with the results you obtained under b in terms of minimum profit, maximum profit, average profit, and standard deviation. Does it seem that the additional spending on ads is paying off? [4 points] Note: Please submit printouts of all the tables with your results as part of your solution for this problem. I 8. Portab. electronics manufacturer is considering developing a new portable printer. Their preliminary analysis has determined the first-year selling price, administrative cost, and advertising cost as follows: Selling price $320 Administrative cost = $650,000 Advertising cost $800,000 The cost of labor, the cost of parts, and the first year demand will be probabilistic inputs to the analysis with estimated ranges as: Direct labor cost per unit could range from $35 to $41 Parts cost per unit could vary from $60 to $90 First year demand could vary from 1,000 to 20,000 = a. Please calculate profit for the best and worst case scenarios and average profit for the two cases. [2 points] I b. Calculate the minimum profit, maximum profit, average profit, and its standard deviation by performing a simulation with 40 replications under the following assumptions. Parts cost could randomly vary between $60 and $90. Demand has a normal distribution with a mean of 10,000 and standard deviation of 2,000. Direct labor costs follow the following probability distribution. Labor Cost Per Unit 35 36 37 38 39 40 41 Frequency 0.05 0.25 0.30 0.20 0.10 0.08 0.02 c. Suppose the advertising expenditure is increased to $1,200,000 as a result of which demand would shift up to new level with an average value of 15,000 and the same standard deviation as before (2,000). Please conduct the simulation again and compare your new results with the results you obtained under b in terms of minimum profit, maximum profit, average profit, and standard deviation. Does it seem that the additional spending on ads is paying off? [4 points] Note: Please submit printouts of all the tables with your results as part of your solution for this problem. I 8. Portab. electronics manufacturer is considering developing a new portable printer. Their preliminary analysis has determined the first-year selling price, administrative cost, and advertising cost as follows: Selling price $320 Administrative cost = $650,000 Advertising cost $800,000 The cost of labor, the cost of parts, and the first year demand will be probabilistic inputs to the analysis with estimated ranges as: Direct labor cost per unit could range from $35 to $41 Parts cost per unit could vary from $60 to $90 First year demand could vary from 1,000 to 20,000 = a. Please calculate profit for the best and worst case scenarios and average profit for the two cases. [2 points] I b. Calculate the minimum profit, maximum profit, average profit, and its standard deviation by performing a simulation with 40 replications under the following assumptions. Parts cost could randomly vary between $60 and $90. Demand has a normal distribution with a mean of 10,000 and standard deviation of 2,000. Direct labor costs follow the following probability distribution. Labor Cost Per Unit 35 36 37 38 39 40 41 Frequency 0.05 0.25 0.30 0.20 0.10 0.08 0.02 c. Suppose the advertising expenditure is increased to $1,200,000 as a result of which demand would shift up to new level with an average value of 15,000 and the same standard deviation as before (2,000). Please conduct the simulation again and compare your new results with the results you obtained under b in terms of minimum profit, maximum profit, average profit, and standard deviation. Does it seem that the additional spending on ads is paying off? [4 points] Note: Please submit printouts of all the tables with your results as part of your solution for this problem. I 8. Portab. electronics manufacturer is considering developing a new portable printer. Their preliminary analysis has determined the first-year selling price, administrative cost, and advertising cost as follows: Selling price $320 Administrative cost = $650,000 Advertising cost $800,000 The cost of labor, the cost of parts, and the first year demand will be probabilistic inputs to the analysis with estimated ranges as: Direct labor cost per unit could range from $35 to $41 Parts cost per unit could vary from $60 to $90 First year demand could vary from 1,000 to 20,000 = a. Please calculate profit for the best and worst case scenarios and average profit for the two cases. [2 points] I b. Calculate the minimum profit, maximum profit, average profit, and its standard deviation by performing a simulation with 40 replications under the following assumptions. Parts cost could randomly vary between $60 and $90. Demand has a normal distribution with a mean of 10,000 and standard deviation of 2,000. Direct labor costs follow the following probability distribution. Labor Cost Per Unit 35 36 37 38 39 40 41 Frequency 0.05 0.25 0.30 0.20 0.10 0.08 0.02 c. Suppose the advertising expenditure is increased to $1,200,000 as a result of which demand would shift up to new level with an average value of 15,000 and the same standard deviation as before (2,000). Please conduct the simulation again and compare your new results with the results you obtained under b in terms of minimum profit, maximum profit, average profit, and standard deviation. Does it seem that the additional spending on ads is paying off? [4 points] Note: Please submit printouts of all the tables with your results as part of your solution for this problem. I 8. Portab. electronics manufacturer is considering developing a new portable printer. Their preliminary analysis has determined the first-year selling price, administrative cost, and advertising cost as follows: Selling price $320 Administrative cost = $650,000 Advertising cost $800,000 The cost of labor, the cost of parts, and the first year demand will be probabilistic inputs to the analysis with estimated ranges as: Direct labor cost per unit could range from $35 to $41 Parts cost per unit could vary from $60 to $90 First year demand could vary from 1,000 to 20,000 = a. Please calculate profit for the best and worst case scenarios and average profit for the two cases. [2 points] I b. Calculate the minimum profit, maximum profit, average profit, and its standard deviation by performing a simulation with 40 replications under the following assumptions. Parts cost could randomly vary between $60 and $90. Demand has a normal distribution with a mean of 10,000 and standard deviation of 2,000. Direct labor costs follow the following probability distribution. Labor Cost Per Unit 35 36 37 38 39 40 41 Frequency 0.05 0.25 0.30 0.20 0.10 0.08 0.02 c. Suppose the advertising expenditure is increased to $1,200,000 as a result of which demand would shift up to new level with an average value of 15,000 and the same standard deviation as before (2,000). Please conduct the simulation again and compare your new results with the results you obtained under b in terms of minimum profit, maximum profit, average profit, and standard deviation. Does it seem that the additional spending on ads is paying off? [4 points] Note: Please submit printouts of all the tables with your results as part of your solution for this problem. I
Expert Answer:
Related Book For
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
Students also viewed these accounting questions
-
A shoe manufacturer is considering developing a new brand of running shoes. The business problem facing the marketing analyst is to determine which variables should be used to predict durability...
-
A shoe manufacturer is considering developing a new brand of running shoes. The business problem facing the marketing analyst is to determine which variables should be used to predict durability...
-
A shoe manufacturer is considering developing a new brand of running shoes. The business problem facing the marketing analyst is to determine which variables should be used to predict durability...
-
In the year to 5 April 2021, Thomas More made the following disposals: (i) A flat in a house that he had purchased on 1 December 2010 for 80,000. It had never been occupied as the main residence and...
-
Consider 2.5 kg of austenite containing 0.65 wt% C, cooled to below 727(C (1341F). (a) What is the proeutectoid phase? (b) How many kilograms each of total ferrite and cementite form? (c) How many...
-
Kamal Enterprises Ltd., a garment manufacturer in Mumbai, India, is negotiating to purchase a fully automated sewing machine. This machine can be programmed to sew and is expected to reduce...
-
A well-known poem about accounting was written by H.S. Bailey, Jr. and published in 1975 in Publishers Weekly: Discuss the message that Mr. Bailey was trying to convey through this poem. Though my...
-
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. Arecent report indicates that nearly 50 Americans contract HIV...
-
Red Sunset Co. manufactures mobile phones and wants to add a new model to its current line of products. The firm has estimated that the new phone's selling price will be $80 and that variable costs...
-
A collar B, of mass m and negligible dimensions, is attached to the rim of a hoop of the same mass m and of radius r that rolls without sliding on a horizontal surface. Determine the angular velocity...
-
A project requires hauling of 40,000 cubic yards (cy) of compacted fill. The fill material will be hauled to the site in 21-cy, loose measure, trucks. The cycle time for a truck is 40 minutes per...
-
3 You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $82...
-
Research the structure of menthone, and describe what the structure of the product should look like after this reaction. Also, narrate how the IR spectra will differ between the reactant and the...
-
A wood box weighs 92 lbs, including contents. How much horizontal force must you apply to overcome friction and start pushing the box along a wood floor in the back of a truck? Show your calculations.
-
You purchase a bottle of water after entering the security checkpoint in an airport. You begin your flight, open the bottle and drink of the water, reseal it, and then land. Describe what has...
-
A former physics student asked the pilot information about the flight she took. She received the following information. On takeoff, the plane began with a weight of 198,500 lbs. If the jet engines...
-
3 6 C C (Simplify your answer. Type a fraction.)
-
Select the correct answer for each of the following questions. 1. On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its...
-
Consider the following contingency table: What is the probability of a. A|B? b. A|B'? c. A'|B'? d. Are events A and B independent? B-00 2
-
Webcredible, a UK-based consulting firm specializing in websites, intranets, mobile devices, and applications, conducted a survey of 1,132 mobile phone users between February and April 2009. The...
-
The owner of a chain of ice cream stores has the business objective of improving the forecast of daily sales so that staffing shortages can be minimized during the summer season. The owner has...
-
Given the following different scenarios, calculate revenue, gross profit and cost of sales from the information available. (a) Revenue 100,000, gross margin 25%. (b) Revenue 200,000, mark-up 30%. (c)...
-
Solve the LP problem: \[ \begin{aligned} & \text { minimize: } g=x_{1}+x_{2} \\ & 2 x_{1}+3 x_{2} \geq 6 \\ & \text { subject to: } \\ & 4 x_{1}+3 x_{2} \geq 12 \\ & 6 x_{1}+x_{2} \geq 6 \\ & x_{1},...
-
A town post office has \(\$ 800,000\) available for the purchase of delivery vehicles. There are two models, a Jeep style and a van style, under consideration. Each Jeep costs \(\$ 8000\) and each...
Study smarter with the SolutionInn App