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Q1) Market in Boston orders oranges from Florida. Oranges are shipped to Boston from Florida by either railroad, truck, or airplane; an order can take 1,2,3, or 4 days to arrive in Boston once it is placed. Following probabilities have been assigned to number of days it takes to receive order once it is placed (referred to as lead time):
Lead time
Probability
1
0.20
2
0.50
3
4
0.10
Total
Calculate expected number of days it takes to get the order and standard deviation.
Willow Furniture Company produces tables. Fixed monthly cost of production is $8,000, and variable cost per table is $65. Tables sell for $180.
1) For monthly volume of 300 tables, find out total cost, total revenue and profit.
2) Find out monthly break-even volume for Willow Furniture Company.
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