Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The mini-mart purchases the

A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the

A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The mini-mart purchases the magazines for $1.55 and sells them for $3.88. Any magazines left over at the end of the month are donated to hospitals and other health care facilities. Modify the newsvendor example spreadsheet to model this situation. Use what-if analysis to investigate the financial implications of this policy if the demand is expected to vary between 10 and 30 copies each month. The demand must be at least (Type a whole number.) copies for the gasoline mini-mart to break even. Newsvendor model spreadsheet 1 Newsvendor Model 2 3 Data 4 5 Selling price 6 Cost 7 Discount price 8 9 Model 0 11 Demand 12 Purchase Quantity 13 14 Quantity Sold 15 Surplus Quantity 16 17 Profit D $3.88 $1.55 SO 10 24 The formula for the quantity sold is =MIN(B11,B12). The formula for the surplus quantity is =MAX(0,B12-B11). The formula for the profit is =B14*B5-B12*B6.

Step by Step Solution

3.48 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Analytics Methods Models And Decisions

Authors: James R. Evans

2nd Edition

321997824, 978-1119298588, 978-0321997821

More Books

Students also viewed these Accounting questions