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- McBurger Inc., wants to redesign its kitchen to improve productivity and quality. Three designs,called B1, B2, and B3, are under consideration. No matter which design is used, daily demandfor sandwiches at a typical McBurger restaurant is 500 sandwiches. A sandwich costs 500 baizato produce. Non-defective sandwich sell, on average, for 1 OR per sandwich. Defective sandwichcannot be sold and are scrapped. The goal is to chose a design that maximizes the expected profitat a typical restaurant over a period of one year (365 days). Designs B1, B2, and B3 cost 40,0003OR, 50,000 OR, and 70,000 OR, respectively. Under design B1, there is 0.8 chance that 90 outof each 100 sandwiches are non-defective and 0.2 chance that 70 out of each 100 sandwiches arenon-defective. Under design B2, there is 0.85 chance that 90 out of each 100 sandwiches are nondefective and 0.15 chance that 75 out of each 100 sandwiches are non-defective. Under design B3,there is 0.9 chance that 95 out of each 100 sandwiches…solve it manually; do not use excel A steel pedestrian overpass must either be reinforced or replaced. Reinforcement would cost $25,000 and would make the overpass adequate for an additional 6 years of service. If the overpass is torn down now, the scrap value of the steel would exceed the removal cost by $15,000. If it is reinforced, it is estimated that its net salvage (market) value would be $18,000 at the time it is retired from service. A new pre-stressed concrete overpass would cost $140,000 and would meet the foreseeable requirements of the next 40 years. Such a design would have no net scrap or MV. It is estimated that the annual expenses of the reinforced overpass would exceed those of the concrete overpass by $3,200. Assume that money costs the state 8% per year and that the state pays no taxes. What would you recommend?What is he social and financial implictions of generic pricing decisions for various stakeholders?
- Quantity of Marginal Resort Units Capacity Cost 150 200 250 300 350 $5,000 $5,000 $5,000 $5,000 $5,000 OA $2,000 OB. $2,500 OC. $1,750 OD. $1,250 Marginal Operating Cost $1,000 $1,000 $1,000 $1,000 $1,000 Peak Marginal Revenue $8,000 $7,500 $6,700 $6,000 $5,000 Off-Peak Marginal Peak Revenue Demand $2,000 $10,000 $1,500 $8,000 $1,000 $7,800 $750 $7,000 $500 $6,250 Off-Peak Demand $2,500 $2,000 $1,750 $1,250 $1,000 The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units. What is the profit-maximizing price for Gorgeous Sands Resort to charge during the off-peak period?Select correct options plz.A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately D = 780 - 10p units. The fixed cost is $800 per month and the variable cost $30 per unit produced. What number of units, D*,should be produced per month and sold to maximize the profit per month related to the product? A 300 B 280 C) 480 D 240
- 2) 'PALY' is a new telephone handset with inbuilt applications that makes it a must own. What are the characteristics of the life span of the new product after 10 years?Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O AA certain masonry dam requires 500,000 cu.m. of gravel for its construction. The contractor found two possible sources for the gravel with the following data: Source A Source B 1.0 km Average distance, gravel pit to dam 4.0 km site Gravel cost/cu.m. at pit Purchase price of pit Road construction necessary Overburden to be removed at P50.00/cu.m. Hauling cost per cu.m. per km P415.00 ------- P800,000.00 P450,000.00 None 80,000 cu.m. P7.00 P7.00 Which of the two sites will give lesser cost?
- Question completion Status: 44 40 36 32 28 24 20 16 12 8 a firm in a perfectly competitive market $ 4 8 $1 12 16 20 34. If the market price is $40, this firm's maximum total profit would be: (a)-$180 (b) $0 (c) $51 (d) $209 O(e) $300 MC N 119 114 24 28 ATC AVC 32A competitive industry has production processes that generate pollution. ok with studies carried out on the affected population, the marginal costs associated with contamination are constant and CU500. for each unit of the good produced. these costs are associated with lost workdays, illness treatment costs, and the nuisance generated in the population. Currently the production level of the industry is 250 units and the market price is 1,500 (MU/unit). Market studies carried out by companies estimate that if the price rises At 1,800 (mu/unit) the quantity demanded would fall to 200 units and the marginal cost of the production of each company in this new production level is 1,300 (m.u./unit). Assume linearity in market demand and in the marginal costs of production of the companies Graph to justify your answers. A)Determine the optimal production level from the perspective of the whole of the society. Show your result graphically.Engineering Economics: In Plant Design, one is required to compute for one time-independent and one time-dependent market indicator.Which of the following will provide a better market analysis? A. Payback Period & Breakeven PointB. Capitalized Cost & Payback PeriodC. Discounted Payback Period & Annual WorthD. Inflation Rate & ROI