Creating the profit model

Assignment Help Operation Management

Reference no: EM13105653

The management of Maderira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is 30,000. The variable cost is between 16 and 24 with a most likely value of 20 per unit. The product will sell for 50 per unit. Demand for the product is expected to range from 300 to 2100 units. with 1200 units the most likely demand.
A. Develop the profit model for this product.
B. Provide the base case, worst case and best case analysis
C. Discuss why simulation would be desirable.

Reference no: EM13105653

Questions Cloud

Average buglary rate for a juisdiction : The average buglary rate for a juisdiction has been 311 per year with a standard deviation of 50 what is the probability that next year the number of burglaries will be more than 350.

Explain custody of a marketing research project : You are a manager in custody of a marketing research project. Your goal is to control what effects different levels of advertising have on consumption behaviour

Distribution of the lengths of songs : Find the probability that a random selection of 9 songs will have mean length of 186.30 seconds or less. Assume distribution of the lengths of the songs is normal.

Hazel is suffers from debilitating arthritis : Hazel is 84 as well as suffers from debilitating arthritis. Occasionally she can barely walk. Every time Hazel has been unable to get around her neighbour Ruth cooks as well as cleans for her until she feels better

Creating the profit model : The management of Maderira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is 30,000.

Confidence interval question for houses sold : Suppose that a random sample of fifteen recently sold houses in a certain city has a mean sales price of $290000 , with a standard deviation of $15,000.

Assuming variable normally distributed : find probabilty that the average of those counts is more than 83.0 mosquitoes per square meter. Assume the variable is normally distributed.

Confidence interval-time series : A researcher estimates an AR(1) model with an intercept and finds that the OLS estimate of Beta1 is 0.95, with a standard error of 0.002.

Role of education in successful financial planning : Write five sentences about role of education in successful financial planning, in which you accurately use the different verb tense in each sentence.

User Account

All Pages