Company XYZ produces and sells widgets. Production is done at two separate factories, one in Mississauga...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Company XYZ produces and sells widgets. Production is done at two separate factories, one in Mississauga and one in Scarborough. An analysis reveals that in the Mississauga location, it costs CM (9) 509 +10000 (dollars) to produce q widgets in a month, while in the Scarborough location it costs Cs(4)=q² +20000 (dollars) to produce q widgets in a month. The company needs to fulfill orders for a total of 400 widgets in the month of March 2023. (a) How many widgets should each location be assigned to produce so that the total cost of production is minimized? (b) Due to differences in quality control and shipping costs, company XYZ decides to sell widgets produced at each factory at different price levels: widgets produced in Mississauga are to be sold for $2000 each, and widgets produced in Scarborough for $2800 each. Show that it is most profitable for the company to allocate all production to Scarborough. Company XYZ produces and sells widgets. Production is done at two separate factories, one in Mississauga and one in Scarborough. An analysis reveals that in the Mississauga location, it costs CM (9) 509 +10000 (dollars) to produce q widgets in a month, while in the Scarborough location it costs Cs(4)=q² +20000 (dollars) to produce q widgets in a month. The company needs to fulfill orders for a total of 400 widgets in the month of March 2023. (a) How many widgets should each location be assigned to produce so that the total cost of production is minimized? (b) Due to differences in quality control and shipping costs, company XYZ decides to sell widgets produced at each factory at different price levels: widgets produced in Mississauga are to be sold for $2000 each, and widgets produced in Scarborough for $2800 each. Show that it is most profitable for the company to allocate all production to Scarborough.
Expert Answer:
Answer rating: 100% (QA)
To minimize the total cost of production for the 400 widgets you can use the calculus method of finding the minimum of the total cost function The tot... View the full answer
Related Book For
Management Science The Art of Modeling with Spreadsheets
ISBN: 978-1118582695
4th edition
Authors: Stephen G. Powell, Kenneth R. Baker
Posted Date:
Students also viewed these programming questions
-
Jane and her former partner, Maria, are in the process of moving out of their shared apartment following a mutually agreed break - up . They are actively attempting to split their shared resources...
-
Two factories produce three different types of kitchen appliances. The following table summarizes the production capacity, the number of each type of appliance ordered, and the daily operating costs...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Jasper SkyTram transports passengers to the top of Whistler Mountain in the Canadian Rockies where there are spectacular views, boardwalks, and hiking trails. The SkyTram travel time (in minutes)...
-
To find the height of an overhead power line, you throw a ball straight upward. The ball passes the line on the way up after 0.75 s, and passes it again on the way down 1.5 s after it was tossed....
-
Listed below are the amounts (dollars) it costs for marriage proposal packages at the different Major League Baseball stadiums. Five of the teams don't allow proposals. Are there any outliers, and...
-
Describe the function of a dark pool.
-
Can a CPA be independent without being objective? Why or why not? Can a CPA be objective without being independent? Why or why not? Does your answer matter assuming you only provide only non auditing...
-
With two hundred words: Please define and explain simple linear regression. Define simple linear regression and explain the steps necessary to conduct a regression analysis.
-
GUI Assignment You will be creating a seating arrangement application using JavaFX. The project will comprise of two sections: the interface and the Java code. The application will feature a 3x3...
-
Write a MATLAB statement which uses the commands prod() and sum() to compute the product of the sums of each row of a 3 x 3 random matrix.
-
Slim Chickens needs a new fryer for its uber delicious honey bbq wings. Steven Spielberg was hired as the assistant manager in charge of making the purchase. TOPKITCH commercial fryer was on sale....
-
Frank Templeton is famous for providing great investments for its clients, including a recently approved Bitcoin ETF. One of those investments, according to The Beast, offered to double your money in...
-
Tesla automobiles are projected to lose significant amount of value in the secondhand market due to an anticipated decline in the price of gasoline at the pumps. Quentin Argentina has her eye set on...
-
Arya Co. is considering the following two independent projects. The cash flows for Project A are expressed in nominal terms, while Project B's are expressed in real terms. The appropriate nominal...
-
Lays, in its new marketing strategy, challenged consumers to propose new creative flavors for potato chips. This challenge caught on in such a way that 3.8 million new flavors emerged in 3 months....
-
Column 14 is our target. For this lab, please do these following 1. Import the data into your Google Colab runtime (25%) 2. Determine the type of each column (class or numeric - not the data types...
-
Name some of the various types of financial intermediaries described in the chapter and indicate the primary reason(s) each was created.
-
The database Low Birth Weight.xlsx* consists of data on 189 women, 59 of whom had low-birth-weight babies. The data provided include basic demographic information (e.g., age of mother) as well as...
-
Refer to the Reid's Raisins case. Design a spreadsheet that will allow the firm to project profit for base-case conditions; the open market grape price is $0.30. The following exercises refer to the...
-
A painting operation is scheduled in blocks, where each block involves painting products with a particular color. Cleaning time is required in between each pair of blocks so that the equipment can be...
-
A dividend that is paid every quarter or every year is called? a. Regular dividend b. Special dividend c. Property dividend d. Stock dividend
-
What is the meaning of each of the following terms: corporation, articles of incorporation, corporate charter, board of directors, corporate officers, and organization costs?
-
The statement of stockholders' equity includes each of the following except: a. Retained Earning b. Treasury Stock c. Paid-in Capital in Excess of Par Value d. Accounts Receivable
Study smarter with the SolutionInn App