Reference no: EM13920396
A probabilistic budget
PIB has recently developed a new product, and is planning a marketing strategy for it. A choice must be made between selling the product at a unit price of either $15 or $17.
Estimated sales volumes are as follows.
At price of $15 per unit At price of $17 per unit Sales volume Probability Sales volume Probability
|
Units
|
|
Units
|
|
|
20,000
|
0.1
|
8,000
|
0.1
|
|
30,000
|
0.6
|
16,000
|
0.3
|
|
40,000
|
0.3
|
20,000
|
0.3
|
|
|
|
24,000
|
0.3
|
(a) Sales promotion costs would be $5,000 at a price of $15 and $12,000 at a price of $17.
(b) Material costs are $8 per unit.
(c) Labour and variable production overhead costs will be $5 per unit up to 30,000 units and $5.50 per unit for additional units.
(d) Fixed production costs will be $38,000.
The management of PIB wish to allow for the risk of each pricing decision before choosing $15 or $17 as the selling price.
Required
Determine which sales price would be preferred if the management selected the alternative which did the following.
(a) Minimised the worst possible outcome of profit.
(b) Maximised the best possible outcome of profit.
|
Observing and recording behavior in various environments
: Which of the following research methods is best at observing and recording behavior in various environments without trying to control the situation?
|
|
Explain different types of operators used in oracle
: Explain different types of operators used in ORACLE.Explain the following commands with an example.
|
|
Problem regarding the project plan inception
: You have been made the Chief Information Officer and Chief Technology Officer (CIO / CTO) of an innovative e-Commerce start-up company that a venture capital group has funded.
|
|
Oceanic organization
: Oceanic Organization is assessing two equally Elite Remodeled Designs with a three--year target completion scenarios. Each migration requires an investment of $10,000. The Network Migration had the following cash inflows received at the end of..
|
|
Determine which sales price would be preferred
: Determine which sales price would be preferred if the management selected the alternative which did the following. Minimised the worst possible outcome of profit.
|
|
Continuation of the diversity training manual
: As a continuation of the diversity training manual, you (as the new manager of human resources) should now create portions that specifically address gender issues and are targeted at training and raising the sensitivity of all supervisors regardin..
|
|
Histogram of the compressive strength
: Produce a histogram of the "compressive strength" distribution with five class intervals. Right click on the Title and modify it to reflect your option that you have used five intervals. Enter an appropriate title for this modified Histogram. Cop..
|
|
The purpose of crime and punishment
: After viewing the video, Gender & Crime, please address each of the following questions:
|