T Text Insert Table Chart Shape Modiano Management Science 1. Assignment Revenue, Costs, Profits/Objective Functions and Constraints (Show all Work for Poll Credit) (4 Problem) 1. You are the beverages manager of an exclusive high-end night club that attracts people from all over the world (think of Club Tho in Las Vegas). You are trying to assess the revenue possibilities of offering Hennessy XO (very decent cognac) for sale. XO typically sells on average for about $200.00 a bottle at the retail level However, the club can buy it by the case at the wholesale level and pay a discount price for, let's say, around $188.00 a bottle. XO comes in 750 milliliter (ml) bottles only (fifth bottle). Each 750ml bottle will yield roughly 17 shots. You need to make a decision quickly so that your boss can begin to allocate resources to acquire this product. Here are the questions that you must answer. How much revenue can the club generate a case (24 bottles) if it sells each shot of XOM $20.00 . How much profit is generated per bottle? How much profit is generated per drink? What price should each shot of XO be sold at to at least break-even? Given these profit margins, is the price charged a good price? Should you adopt XO to generate income or not go forward with the proposed project? Why or why not? 2. You are trying to get a 4.0 GPA. Given that 90 is the minimum for an A and 80 is the minimum for a B, you hypothesize that if you study 2 hours a day (xi) for no more than 4 days week you can cam A. For the B if you study 2 hours a day (a) for no more than 3 days a week you think that you can earn that B Establishing an objective function and constraints, provide a model that Shows what happens to your grade when you study two (2) hours a day Shows how many hours of study that are needed to maximize your grade 3. Based on your grade results, should you confirm or reject your initial hypothesis? I 3. Based on your grade results, should you confirm or reject your initial hypothesis? . 4. Because of increases in rent, the club decides to increase the price of XO to $23 per shot. Given this new situation and also given the following information R(x)= 23 x-revenue per shot of XO C(x) - 188+11 x-cost per shot of XO *(x)=R (*) - C*) - profit Based on our break even formula and analysis, how many shots must the club sell per bottle to break even? Show all work PLEASE TYPE ALL OF YOUR ANSWERS ON THIS SHEET. IT IS EASIER TO GRADE THAT WAY. THANKS