### Formulate a spreadsheet model that will give the profit

Assignment Help Operation Management
##### Reference no: EM1386473

The Special Products Company (SPC) produces expensive and unusual gifts to be sold in stores that cater to affluent customers who already have everything. The latest new-product proposal to management from the company%u2019s Research Department is a limited edition leather wallet. Management needs to decide whether to introduce this new product and, if so, how many of these wallets to produce. Before making this decision, a sales forecast will be obtained to estimate how many wallets can be sold. Management wishes to make the decision that will maximize the company%u2019s profit. If the company goes ahead with this product, a fixed cost of \$45,000 would be incurred for setting up the production facilities to produce this product. (Note that this cost would not be incurred if management decided not to introduce the product since the setup then would not be done.) In addition to this fixed cost, there is a production cost that varies with the number of wallets produced. (The cost for each additional uni tproduced, \$450, is referred to as the marginal cost.) Each wallet sold would generate a revenue of \$700 for the company.)

Formulate a spreadsheet model that will give the profit in part b for any of the two numbers. Use the Excel goal seek command to calculate the break-even point found in part a. How many wallets should SPC make when s = 80 and s = 300? What are the corresponding profits?

#### Questions Cloud

 What is the enhancement in temperature of bullet : A flight attendant pulls her 63-N flight bag a distance of 277-m along a level airport floor at a constant velocity. The force she exerts is 35N at an angle of 57° above the horizontal. Determine the work completed by the force of friction on flig.. How many cars would you expect to see in the system : How many cars would you expect to see in the system. A toll tunnel has decided to experiment with the use of a debit card for the collection of tolls. Initially, only one lane will be used What torque is required to the motor : A 24.00 kg child is on a swing that hangs from 1.6-m long chains. What is her highest speed if she swings out to a 45° angle. Find running time of heap sort input sorted-ascending order : Determine the running time of Heap Sort if input is sorted in ascending order. Determine the running time of Heap Sort if input is sorted in descending order. Formulate a spreadsheet model that will give the profit : Formulate a spreadsheet model that will give the profit in part b for any of the two numbers. Use the Excel goal seek command to calculate the break-even point found in part a. Question about molecular biology : Assume you infected an E. coli culture with a virulent bacteriophage. Most of the cells lysed, but a few survived - 1x10^-4. You wonder where the resistant bacteria came from. Determine the amount by which the spring is stretched : A 9.10 kg board is wedged into a corner and held by a spring at a 50° angle, as the Illustrating shows. The spring has a spring constant of 196 N/m and is parallel to the floor. Determine the mode shapes and frequencies of vibration : Determine the mode shapes and frequencies of vibration of the system of cars by Sweeping the rigid body mode The objective is to find a production plan that maximizes : The objective is to find a production plan that maximizes the daily profit. Formulate your model mathematically and solve it by using the Excel solve

### Write a Review

#### Illustrate what is slack time for each individual activity

Shirley Hopkins is developing a program in leadership training for middle managers. Shirley has listed a number of activities that must be completed before a training program of this nature could be conducted. Illustrate what is slack time for eac..

#### Illustrate what would happen to during put of the line

Illustrate what would happen to during put of the line if we replaced the large single-machine at the bottleneck station with four smaller machines and held WIP at its current level.

#### Assume that a company near you wanted to expand

Assume that a company near you wanted to expand into foreign markets. What issues should that company explore before deciding whether

#### Illustrate what problem did hsbc face in this case

Illustrate what problem did HSBC face in this case. Illustrate what people technology also organization factors were responsible for this problem.

#### Describe the effects of an unmotivated workforce on company

Describe the effects of an unmotivated workforce on a company. Explain how does Tesco benefit from ensuring that its workforce is motivated.

#### What is average utilization of the computers

What is the probability that an arriving customer will find all massage chairs occupied and what is the minimum total number of computers that the firm will have to install to meet this goal?

#### Explain why do you think starbucks has now elected to expand

Explain why do you think Starbucks has now elected to expand internationally primarily through local joint ventures, to whom it licenses its format, as opposed to a pure licensing strategy.

#### Explain how many weeks of supply of raw material

The organization reported which it used \$500M worth of raw material during the year. On average, explain how many weeks of supply of raw material are on hand at the factory.

#### Illustrate what is organizational behaviour

Explain how an organization similar to living things Illustrate what is organizational behaviour explain why is it important to understand organizational behaviour.

#### Operations management problem relating to an organisation

Operations Management problem relating to an organisation with which you are familiar and undertake a critical review

#### Elucidate how would hill do so also at illustrate what costs

If it were necessary to crash to 250 or 240 days, Elucidate how would Hill do so also at illustrate what costs. As noted in the case, suppose that optimistic time estimates can be used as crash times.

#### Description of linear programming

The dean of the Western College of Business must plan school's course offerings for the fall semester. Student demands make it necessary to offer at least 30 undergraduate and 20 graduate courses in the term.