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A phone manufacturing company is considering to manufacture phones for one it's popular model range for the upcoming sales season. The fixed cost to produce
A phone manufacturing company is considering to manufacture phones for one it's popular model range for the upcoming sales season. The fixed cost to produce is $750,000. The material cost per unit is $88.00 and the labor cost per unit is $20.00. The company expects that the revenue per unit will be $400.00. Note: the material cost and labor cost together make up the variable cost per unit. Assuming that after the sales, profit is calculated based the difference in the revenue and total costs invested, answer the below - - a. Build an influence diagram that illustrates the profit. - b. Define mathematical notations for each node. - c. From a and b, show the mathematical model that calculates profit. - d. From a, b and c; implement the model in excel using the principles of good spreadsheet design. - e. What is the profit when 4500 units are considered
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