No explanation is needed, just the answers.
2. [-/1.02 Points] DETAILS ASWQUANT13 1.E.011. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Question Details X QUESTION PARTS 10 11 12 13 14 15 16 17 18 POINTS -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0.06 -/0 SUBMISSIONS USED 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 TOTAL -/1.02 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand (economists refer to such products as normal goods). Let d = annual demand for a product in units = price per unit Assume that a firm accepts the following price-demand relationship as being a realistic representation of its market: d = 1,000 - 12 where p must be between $20 and $80. (a) How many units can the firm sell at the $20 per-unit price? At the $80 per-unit price? units at $20 per-unit = 1 units at $80 per-unit = 2 (b) What happens to annual units demanded for the product if the firm increases the per-unit price from $25 to $267 From $44 to $45? From $67 to $68? What is the suggested relationship between the per-unit price and annual demand for the product in units? () What happens to annual units demanded for the product if the firm increases the per-unit price from $25 to $26? units at $25 per-unit = 3 units at $26 per-unit = ii) What happens to annual units demanded for the product if the firm increases the per-unit price from $44 to $45? units at $44 per-unit = units at $45 per-unit = 6 (ill) What happens to annual units demanded for the product if the firm increases the per-unit price from $67 to $68? units at $67 per-unit = units at $68 per-unit = 8 iv) What is the suggested relationship between the per-unit price and annual demand for the product in units? This suggests that the relationship is --Select- and that annual demand 10 [-Select- v ] by 11 units for every $1 in price increase. (c) Show the mathematical model for the total revenue (TR) in terms of p, which is the annual demand multiplied by the unit price. TR = (d) Based on other considerations, the firm's management will only consider price alternatives of $34, $46, and $58. Use your model from part (b) to determine the price alternative that will maximize the total revenue. TR at $34 per-unit = $ 13 TR at $46 per-unit = $ 14 TR at $58 per-unit = $ 15 Given the constraints, the Total Revenue is maximized at $ 16 per-unit. (e) What are the expected annual demand and the total revenue corresponding to your recommended price? d = 17 TR = $ 18 Need Help? Read It Submit Answer3. [-/1 Points] DETAILS ASWQUANT13 1.E.012. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Question Details X QUESTION PARTS TOTAL POINTS -/0.33 -/0.33 -/0.34 -/1 SUBMISSIONS USED 0/10 0/10 0/10 The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2,400 for the production setup. The variable cost is $50 per pair, and each pair sells for $70. (a) Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost (C) of producing x pairs of shoes. (b) Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. P = (c) What is the breakeven point? x = 3 Need Help? Read It 4. [-/1 Points] DETAILS ASWQUANT13 1.E.015. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Question Details X QUESTION PARTS 2 TOTAL POINTS -/0.33 -/0.33 -/0.34 -/1 SUBMISSIONS USED 0/10 0/10 0/10 Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may purchase a box for $240,000. The fixed construction cost for the upper-deck area is estimated to be $4,080,000, with a variable cost of $120,000 for each box constructed. (a) What is the break-even point for the number of luxury boxes in the new stadium? * = 1 (b) Preliminary drawings for the stadium show that space is available for the construction of up to 44 luxury boxes. Promoters indicate that buyers are available and that all 44 could be sold if constructed. (i) What is your recommendation concerning the construction of luxury boxes? O Build the luxury boxes. Do not build the luxury boxes. (il) What profit is anticipated? (Enter a negative value if a predicted loss.) $ 3 Need Help? Read It Submit Answer1. [-/1 Points] DETAILS ASWQUANT13 1.E.009. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Question Details X QUESTION PARTS TOTAL POINTS -/0.11 -/0.11 -/0.11 -/0.1 -/0.11 -/0.11 -/0.11 -/0.11 -/0.12 -/1 SUBMISSIONS USED 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 0/10 Suppose we modify the production model to obtain the following mathematical model: Max 14x s.t. ax = 48 x 20 where a is the number of hours required for each unit produced. With a = 5, the optimal solution is x = 9.6. If we have a stochastic model in which the value of a varies between 3 and 6 (i.e., a = 3, a = 4, a = 5, or a = 6) as the possible values for the number of hours required per unit, what is the optimal value for x? (Round your answers to two decimal places. Let P be total profit.) (a) a = 3 X = 1 P = 2 (b) a =4 K = L P = L (c) a = 5 x = 9.6 P = 5 (d) a = 6 X = 6 P = 7 (e) What problems does this stochastic model cause? Since the value of a is 8 (--Select---V) , the values of x and profit S (--Select-- v known with certainty. Need Help? Read It Submit
