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Suppose that annual fixed cost is $50 to make and $0 to buy, and the variable cost per unit is $0 to make and $1
Suppose that annual fixed cost is $50 to make and $0 to buy, and the variable cost per unit is $0 to make and $1 to buy. If you need 60 units, which do you prefer, make or buy? A make O B buy O C Both make and buy options provide the same benefit and cost. o D Both make and buy options are bad decisions. [] Fullscr O E It does not matter whether we make or buy. An appliance manufacturer produces two mois of microwave ovens: X and Y. Both models require fabrication work; each Xuses 3 hour of fabrication and each Yuses 7 hours of fabrication. There are 21 fabrication hours available this week. X and Y contribute $50 and $20 to the total profit, respectively. To find quantities of X and Y that will maximize the total profit, build a Linear Programming model and solve the LP model using Solver. What is the optimal profit? O A 300 o B 330 0 C 350 OD 380 [] Fullscre o E 410 If the company builds a small facility, its profit is $100 when demand is high (50%) and 560 when demand is low (50%). If the company builds a large facility, its profit is $120 when demand is high (50%), and when the demand is low (50%), the company can either cut prices to earn $50 or do nothing to earn $40. How much does the company want to pay for the perfect information about the demand information? O A $0 O B Up to $5 O C Up to $10 O D Up to $15 E O [ More than $15 Fullscreen
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