Question: PA 1 3 - 2 ( Algo ) Flextrola, Incorporated, an electronics systems integrator, is . . . Flextrola, Incorporated, an electronics systems integrator, is

PA 13-2(Algo) Flextrola, Incorporated, an electronics systems integrator, is...
Flextrola, Incorporated, an electronics systems integrator, is planning to design a key component for its next-generation product with
Solectrics. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such
products and the long lead times quoted by Solectrics, Flextrola only has one opportunity to place an order with Solectrics prior to the
beginning of its selling season. Flextrola's demand during the season is normally distributed with a mean of 900 and a standard
deviation of 700. Use Table 13.4
Solectrics' production cost for the component is $52 per unit, and it plans to sell the component for $70 per unit to Flextrola. Flextrola
incurs essentially no cost associated with the software integration and handling of each unit. Flextrola sells these units to consumers
for $124 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for $46 each. The existing
contract specifies that once Flextrola places the order, no changes are allowed to it. Also, Solectrics does not accept any returns of
unsold inventory, so Flextrola must dispose of excess inventory in the secondary market.
e. If Flextrola orders 1,200 units, what are expected sales?
Note: Round your answer to 2 decimal places.
Expected sales
f. If Flextrola orders 1,200 units, what is expected profit?
Note: Round your answer to 2 decimal places.

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