Compute profit for the base-case-worst case and best-case

Assignment Help Operation Management
Reference no: EM131192670

The management of Madeira Manufacturing Company is considering the introduction of a wearable electronic device with the functionality of a laptop computer and phone. The fixed cost to launch the new product is $300,000. The variable cost for the product is expected to be between $160 and $240, with a most likely value of $200 per unit. The product will sell for $300 per unit. Demand estimates for the product vary widely, ranging from 0 to 20,000 units, with an average of 4000 units.

a. Compute profit for the base-case, worst case, and best-case scenarios

b. Assume the variable cost is a uniform random variable between $16 and $24 and the product demand is an exponential random variable with a mean of 4000 units. Construct a simulation model to estimate the mean profit and the probability that the project will result in a loss.

(I'm having trouble with entering information into excel)

Reference no: EM131192670

Increase capacity by adding new machine

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per

Gibson valves produces cast bronze valves on assembly line

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor produc

Basic break-even analysis typically assumes

Basic break-even analysis typically assumes that a. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production

Alternative locations for new plant for building embossed

The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable

Used in the home improvement center interview

Develop two competency-based questions that could be used in the Home Improvement Center interview that was described in the Unit 6 assignment. Explain why you believe these q

Calculate the economic order quantity-annual inventory costs

A local artisan uses supplies purchased from an overseas supplier. The owner believes the assumptions of the EOQ model are met reasonably well. Minimization of inventory costs

Strategy for merging different organizational cultures

Alas, nothing in life is simple. Your long-lost uncle's lawyer has just phoned you to advise that you must combine your business with the business of the other heir to the for

Calculate the production order quantity

Montegut Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 per day, while demand is 40 per day. Holding costs are $2.00 per


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd