Operations Management, Advanced Statistics

Assignment Help:
1.Sam Lucarelli, owner of Lucarelli Products, is evaluating whether to produce a new product line. After thinking through the production process and the costs of raw materials and new equipment, Williams estimates the variable costs of each unit produced and sold at $6 and fixed costs per year at $60,000.

a)If the selling price is set at $18 each, how many units must be produced and sold for Lucarelli to break even? Use both the graphical and algebraic approaches to get your answer.

b)Lucarelli forecasts sales of 10,000 units for the first year if the selling price is set at $14 each. What would be the total contribution to profits from this new product during the first year?

c)If the selling price is set at $12.50, Lucarelli forecasts the first-year sales would increase to 15,000 units. Which price strategy ($14.00 or $12.50) would result in the greater total contribution to profits?

d)What other considerations would be crucial to the final decision about making and marketing the new product?

Related Discussions:- Operations Management

Factorial designs, Designs which permits two or more questions to be addres...

Designs which permits two or more questions to be addressed in the investigation. The easiest factorial design is one in which each of the two treatments or interventions are p

Dot plot, The more effective display than a number of other methods or tech...

The more effective display than a number of other methods or techniques, for instance, pie charts and bar charts, for displaying the quantitative data which are labeled. An instanc

Describe respondent-driven sampling (rds), Respondent-driven sampling (RDS ...

Respondent-driven sampling (RDS ): The form of snowball sampling which starts with the recruitment of the small number of people in the target population to serve as the seeds. Aft

Mareg, MAREG is the software package for the analysis of the marginal regr...

MAREG is the software package for the analysis of the marginal regression models. The package permits the application of generalized estimating equations and the maximum likelihoo

Design, Difference between tretment design and experimental design

Difference between tretment design and experimental design

Direct edacyclic graph, Formal graphical representation of the "causal diag...

Formal graphical representation of the "causal diagrams" or the "path diagrams" where the  relationships are directed but acyclic (that is no feedback relations allowed). Plays an

Bayes factor, Bayes factor : A summary of evidence for the modelM1 against ...

Bayes factor : A summary of evidence for the modelM1 against the another modelM0 provided by the set of data D, which can be used in the model selection. Given by the ratio of post

Define misspecification, Misspecification  is the term is applied to descri...

Misspecification  is the term is applied to describe the assumed statistical models which are incorrect for one of the several of reasons, for instance, using the wrong probability

Balanced incomplete repeated measures design (birmd), Balanced incomplete r...

Balanced incomplete repeated measures design (BIRMD): An arrangement of the N randomly selected experimental units and k treatments in which each and every unit receives k1 treatm

Incubation period, Incubation period is the time elapsing amongs the receip...

Incubation period is the time elapsing amongs the receipt of infection and the appearance of the symptoms. The length of the incubation time period depends on the disease, ranging

Write Your Message!

Captcha
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