Could you help me ?! It is that when making the graph in Excel, total income and
Question:
Could you help me ?! It is that when making the graph in Excel, total income and total costs never intersect and I do not know what I am doing wrong, please help me.
- I have to perform the profit optimization analysis using the equilibrium point (PE) solution with the following data:
(1) fixed costs $ 7,893,
(2) price $ 5.00 and
(3) variable cost per unit $ 1.3.
I sent him all the instructions given by the teacher. The table is what I have done, any criticism you can give me about it I will appreciate it, although the reason why I write is for
the profit optimization analysis using the equilibrium point (PE) solution with the following data:
(1) fixed costs $ 7,893,
(2) price $ 5.00 and
(3) variable cost per unit $ 1.3.
In Topic 1: Quantitative Methods of Module 1 the importance of using the quantitative analysis approach and the application of the seven steps to follow was discussed. Also, as part of the topic, the use of equilibrium point (PE) solution was discussed. In this work the student will create a real modeling scenario of a hypothetical situation of a fast food restaurant and will apply the use of the equilibrium point solution to it.
Instructions:
- Using the seven steps of the quantitative analysis approach, model a profit maximization problem in a fast food restaurant.
- Using your creativity you are going to give it a name and location.
- You must explain each step using the Table: Modeled in a Real Scenario included below, as close to a real situation.
- Also perform the profit optimization analysis using the equilibrium point (PE) solution with the following data:
(1) fixed costs $ 7,893,
(2) price $ 5.00 and
(3) variable cost per unit $ 1.3. The student will assume that this data comes from the company.
Modeling on a Real Stage: "Here, Better than in Front Restaurant" | |
He passed | Description |
Definition of the problem | Incorporate 100% organic products in order to establish a new menu of healthy, organic, and vegan dishes. |
Development of a Model |
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Data collection |
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Development of a solution |
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Test the solution | Once the "Menu Fit" dishes are selected and established by our chef and the master chef, the new menu will be presented to the clients. They will be granted a 75% discount on the purchase of these dishes, in order to allow us to collect their opinions and criticisms through surveys that will be delivered by the waiters in order to analyze the acceptance of each dish, drink and new fit menu post. In the event that our customers' purchase exceeds $ 100, they will be given free samples of two of the new dishes for the purpose of allowing us to survey their opinions. If necessary, the dishes will be adjusted and / or replaced for greater acceptance of the menu. |
Analysis of the results | |
Implementation |
PE = Fixed Cost
Price - Variable Cost
PE = $ 7,893
$ 5.00 - $ 1.3
PE = $ 7,893
$ 3.7
PE units = 2,133 units.
PE in $ = 2,133 x $ 5.00 = $ 10,665
Total Income = Price x Q Total Cost = Fixed Cost + Variable Cost * Q
Total Income = $ 5 x 0 = 0 Total Cost = 7893 + 1.3 * 0 = 7893
Total Income = $ 5 x 500 = 2500 Total Cost = 7893 + 1.3 * 500 = 8543
Total Income = $ 5 x 1000 = 5000 Total Cost = 7893 + 1.3 * 1000 = 9193
Total Income = $ 5 x 1500 = 7500 Total Cost = 7893 + 1.3 * 1500 = 9843
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba