Computer chip manufacturer-what is the expected profit

Assignment Help Business Economics

Reference no: EM131005038

You are managing a computer chip manufacturer. Your machinery produces chips normally distributed with an average chip speed of 8 gigahertz (ghz) and a standard deviation of 0.5 ghz. The cost of production is $100 per chip. Chips with speeds from 7 to 9 ghz are sold for $125 per chip; faster chips are sold for $150 each; slower chips must be discarded at a cost of $1 each. The company produces 1 million chips per year. What is the expected profit? Please show work.

Reference no: EM131005038

Questions Cloud

What is the annual bond rate of interest : You wish to purchase a $1,000 bond from a friend who needs the money. There are 7 years remaining until the bond matures, and interest payments are quarterly. You decide to offer $750.08 for the bond because you want to earn exactly 16% per year comp..

What is the effectiveness of such global treaties : What is the effectiveness of such global treaties as The Kyoto Agreement to alleviate global environmental issues (global warming, acid rain, etc.). Should the United States take a more active role in these agreements?

The best example of a short-run adjustment : Which of the following is the best example of a short-run adjustment? Smith University completed negotiations to acquire a large piece of land to build its new library. Your local Wal-Mart hires two more associates. A local bakery purchases another c..

Law that governs oklahoma workers compensation : What is the name of the law that governs Oklahoma Workers' Compensation

Computer chip manufacturer-what is the expected profit : You are managing a computer chip manufacturer. Your machinery produces chips normally distributed with an average chip speed of 8 gigahertz (ghz) and a standard deviation of 0.5 ghz. The cost of production is $100 per chip. Chips with speeds from 7 ..

Devise a scheme for converting hexadecimal directly : Convert to hexadecimal: 1457.1110.Round to two digits past the hexadecimal point. Convert to hexadecimal: 1457.1110. Round to two digits past the hexadecimal point. Convert your answer to binary, and then to octal.

Describe this auction as a simultaneous-move game : Queen Elizabeth has decided to auction off the crown jewels, and there are two bidders: Sultan Hassanal Bolkian of Brunei and Sheikh Zayed Al Nahyan of Abu Dhabi. The auction format is as follows: The Sultan and the Sheikh simultaneously submit a wri..

Does revising the estimate pose an ethical dilemma : How would increasing the depreciation period affect American Movieplex's income?

Find the rollback equilibrium outcome : During the Allied invasion of France in 1944, the Germans had to decide where to place their defenses. They had three choices: they could concentrate their defenses at Calais, concentrate at Normandy, or split their defenses between both locations. D..

User Account

All Pages