Question #1. Consider the information given in the file in class exercise 9_question 1.xlsx. A small family owned hotel calculates the fixed cost of running the hotel as 350 000 TL. Furthermore, they estimate that they can sell a room on average for 400 TL per night, and the cost of servicing a room is approximately 150 TL daily.

Part A. Determine when this hotel will break even (i.e., when they will start making positive profits) using Excel Solver.

Part B. Plot the revenue and cost functions for the hotel using a line-graph.

Question #2. Consider the information given in the file in class exercise 9_question 2.xlsx. An orange juice manufacturer estimates that they will need 45 000 kgs of oranges annually. It costs 250 TL to place an order for oranges and it costs 10 TL to hold one kg of orange in inventory per year.

Part A. Determine the optimal order quantity, the number of orders to place in a year, the optimal time between orders (in days) and the total annual cost for the firm.

Part B. Determine how the optimal order quantity and the total set up cost for the firm would change if we vary the holding cost between 5 TL and 50 TL in increments of 5 (i.e., 5 TL, 10 TL, 15 TL... etc.) using the Data Table tool of Excel.

Part C. Plot the annual holding costs, annual set up costs and annual total costs using a line-graph

Part A Part B 350.000 Fixed Cost Unit Variable Cost 150 Price 400 Number of Rooms Total revenue Total cost Total profit Part A Part B 350.000 Cost Unit Variable Cost Price Number of Rooms | 318181818 TORT 1200 1500 1600 2000 2100 2200 2300 00 3200 3100 400 3500 4100 Part A Part B 350.000 Fixed Cost Unit Variable Cost 150 Price 400 Number of Rooms Total revenue Total cost Total profit Part A Part B 350.000 Cost Unit Variable Cost Price Number of Rooms | 318181818 TORT 1200 1500 1600 2000 2100 2200 2300 00 3200 3100 400 3500 4100