Questions Micromedia offers computer training seminars on a variety of topics. In the seminars, each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The price to charge for the seminar is 5600 per student. The cost of the conference room, instructor compensation, lab assistants, and promotion is $9600, Micromedia rents computers for its seminars at the cost of S60 per computer per day, which must be reserved and paid for before the seminar. There is no refund for unused computers. Note that Micromedia cannot admit students any more if they run out of the reserved computers. That is, if the number of students who wish to attend the seminar is more than the number of computers reserved, the excess students cannot attend the seminar. This effectively means that the capacity is the same as the number of computers to reserve. This means the computer cost is fixed and is not influenced by the Qty sold once the number of computers to reserved is determined. Record the following steps. 1. Build a profit model for Micromedia from scratch. Do this as a closed-book assignment. The influence diagram is available from here. 1. Follow the five formatting rules. Profit Revenue Total cost Price # of attending students Computer Fixed costs Demand Capacity Cost per computer # of computers reserved # of days of the seminar Questions Micromedia offers computer training seminars on a variety of topics. In the seminars, each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The price to charge for the seminar is 5600 per student. The cost of the conference room, instructor compensation, lab assistants, and promotion is $9600, Micromedia rents computers for its seminars at the cost of S60 per computer per day, which must be reserved and paid for before the seminar. There is no refund for unused computers. Note that Micromedia cannot admit students any more if they run out of the reserved computers. That is, if the number of students who wish to attend the seminar is more than the number of computers reserved, the excess students cannot attend the seminar. This effectively means that the capacity is the same as the number of computers to reserve. This means the computer cost is fixed and is not influenced by the Qty sold once the number of computers to reserved is determined. Record the following steps. 1. Build a profit model for Micromedia from scratch. Do this as a closed-book assignment. The influence diagram is available from here. 1. Follow the five formatting rules. Profit Revenue Total cost Price # of attending students Computer Fixed costs Demand Capacity Cost per computer # of computers reserved # of days of the seminar
