Question: please answer the expected profit level for K1, K2, & K3 along with which design achieves the maximum expected 300 day profit level. Thank you!

please answer the expected profit level for K1, K2, & K3 along with which design achieves the maximum expected 300 day profit level. Thank you! please answer the expected profit level for K1,
please answer the expected profit level for K1,
McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2 and K3, are under consideration. No matter which design is used daily production of sandwiches at a typical McBurger restaurant is for 560 sandwiches. A sandwich costs $1.50 to produce. Non-defective sandwiches soll, on the average for $2.50 per sandwich Defective sandwiches cannot be sold and are scrapped The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period Design K1, K2 and 3 cost $130,000 $140,000, and $160,000, respectively Under design k1, there is a 80 chance that 90 out of each 100 sandwiches are non-defective and a 20 chance that 70 out of each 100 sandwiches are non-defective. Under design 12. there is a 35 chance that 90 out of each 100 sandwiches are non-defective and a 15 chance that 75 out of each 100 sandwiches are non-defective Under design K3, there is a 90 chance that 95 out of each 100 sandwiches are non-defective and a 10 chance that 80 out of each 100 sandwiches are non-defective The expected profit level of design Ki (Enter your response as a real number rounded to two decimal places) McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2 and K3, are under consideration. No matter which design is used daily production of sandwiches at a typical McBurger restaurant is for 550 sandwiches. A sandwich costs $1.50 to produce. Non-defective sandwiches sell, on the average for $2.50 per sandwich. Defective sandwiches cannot be sold and are scrapped The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period. Designs K1, K2 and 3 cost $130,000, 5140,000, and $160,000, respectively. Under design K1. there is a 80 chance that 90 out of each 100 sandwiches are non-defective and a 20 chance that 70 out of each 100 sandwiches are non-defective Under design K3, there is a 90 chance that 95 out of each 100 sandwiches are non-defective and a 10 chance that 80 out of each 100 sandwiches are non-defective The expected profit level of design K1 is $(Enter your response as a real number rounded to two decimal places)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!