1) Two production processes "A, B" have the following cost structure as shown in the diagram below: (15 min) Variable Cost List of formulas: Profit = Revenue - Total cost Revenue = Selling price volume Total cost = Fixed cost + variable cost per unit volume Process Fixed Cost per Year $100,000 $ 85,000 per Unit B $3.00 $5.50 Break even volume = (Fixed cost)/ (Unit contribution margin) a. What is the most economical process for a volume of 5,500 units? (8 marks) b. How many units per month must be sold with process A to have monthly profits of $4,450 if the selling price is $9 per unit? (4 marks) C. Calculate the break-even volume for process B assuming $9 selling price. (4 marks) 2) General Hospital finds itself treating many car accident victims. Data from the last seven 24-hour periods is shown below: (20 min) Car Victims 8 | Fe+1 = aY + (1 - a)F Day 1 2 3 4 5 6 9 11 13 16 MAE 21 1-K a. What are the forecasts for days 4 through 7 using a 3-period moving average model? Round the forecasts to two decimal places. (5 marks) b. With a smoothing factor of 0.2, what are the exponentially smoothed forecasts for days 2 to 7? Round the forecasts to two decimal places. (7 marks) C. Compare the MAE for the 3-period moving average forecasts for days 4 through 6 to the MAE for the exponential smoothing forecasts for days 4 to 6. (8 marks) 2) General Hospital finds itself treating many car accident victims, Data from the last seven 24-hour periods is shown below: (20 min) Car Victims 8 . Ft+1 = ax: + (1 - a)Ft Day 1 2 3 4 5 6 9 11 13 16 MAE - K a. What are the forecasts for days 4 through 7 using a 3-period moving average model? Round the forecasts to two decimal places. (5 marks) b. With a smoothing factor of 0.2, what are the exponentially smoothed forecasts for days 2 to 7? Round the forecasts to two decimal places. (7 marks) c. Compare the MAE for the 3-period moving average forecasts for days 4 through 6 to the MAE for the exponential smoothing forecasts for days 4 to 6. (8 marks)