Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi there was wondering if you could help w this You are the data scientist for Krrazy Apps!, a developer of multi-player games, delivered as

Hi there was wondering if you could help w this

You are the data scientist for Krrazy Apps!, a developer of multi-player games, delivered as apps for the Apple iPhone and Samsung Galaxy smart phones. You produce four different games, listed below. Each app generates revenue and requires resources to develop and deliver to market.

  • Maniac! Smart phone game app featuring a Tazmanian devil character
  • Kitten! Smart phone game app featuring a cute cuddly kitten
  • Vagabond! Smart phone game app featuring travel to exotic locations
  • Tank! Smart phone game app featuring desert-based tank battles

Krrazy Apps! is looking to you to decide how many of each app to produce and sell. To determine the correct mix of apps to produce and sell, you go to the Finance department to find out the per-unit revenue each app generates, as well as the license fees associated with each per-unit sale. You also learn from Finance that you cannot spend more than $20,000 in license fees per month. The table below summarizes revenue and license fee data.

Revenue/Cost

Maniac! (M)

Kitten! (K)

Vagabond: V

Tank! (T)

Revenue

$50

$40

$30

$20

License Fees

$20

$10

$10

$20

In order to deliver each app, labor is required from the product manager, developer, and test manager shared across the four apps. None of them wants to work weekends, so they are all constrained by a certain number of hours worked per month. The table below summarizes the labor required from each resource on a per-unit basis, as well as the total number of hours available each month from each resource.

Resource

Maniac! (M)

Kitten! (K)

Vagabond: V

Tank! (T)

Total Hr/Mo.

Product Mgr.

3

2

2

3

160

Developer

4

2

3

2

160

Test Manager

1

3

4

1

160

  • Develop the objective equation to maximize revenue. Remember, you are selecting a product mix (selecting how many of each app to sell) to generate as much money as possible.

  • Develop the relevant constraints equations. Add constraints to ensure that the number of each app sold is an integer value. Krrazy Apps! does not have a way to sell fractions of an app.

  • Calculate the optimum value for the number of Maniac!, Kitten!, Vagabond, and Tank! apps to sell, given the constraints. Use Microsoft Excel Solver.

Commentary: Discuss your observations on the case. Are the labor resources being used wisely? Include comparisons to product mix decisions software companies typically make.

Step by Step Solution

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

Step: 3

blur-text-image

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

International Financial Reporting A Practical Guide

Authors: Alan Melville

6th edition

1292200743, 1292200766, 9781292200767, 978-1292200743

More Books

Students also viewed these Finance questions

Question

What dietary factors might relate closely to dementia?

Answered: 1 week ago