You are the manager of a shoe factory.The owners would like to introduce a new shoe style to the collection.The projected cost to set up the land and plants is $110,000.The cost to produce each pair of shoes is $25.The shoes will sell for $35 per pair.

a. Write an algebraic formula to show the profit (loss) in terms of Q (quantity of pairs of shoes produced)

b. How many pairs of shoes does the company need to produce to break even? Solve using the formula in part a.

c. The marketing team believes that the company can sell 7,000 pairs of shoes. Will the company make a profit?If so, how much?If you were the manager, would you decide to take on this project given the costs versus the projected profit?

1. Complete the following on an excel spreadsheet.

a. Complete the break-even problem from #1above by creating an excel spreadsheet. Follow the example that I did in the video in this module.

b. Create new tab on the spreadsheet and solve the following M/G/1 queuing problem

Given:

Lambda = 2.4

1/mu = .387

Sigma = .5

Solve for:

L

Lq

W

Wq

Rho

P0