Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs.
A | B | |
1 | ||
2 | Profit per Unit | 2 |
3 | Quantity | 19,400 |
4 | Gross Profit | |
5 | ||
6 | Total Costs | 9,600 |
7 | ||
8 | Net Profit |
With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- No chatgpt answer i will give 5 upvotesarrow_forwardPlease show all work and explain answer. OneRing Company sells memorabilia to residents of Middle-Earth. They are about to invest $6 million in a new ring making plant. Fixed costs of operating the plant are $1 million a year. The ring costs $60/unit to manufacture (variable cost) and will be sold for $200/unit. The plant will last for 5 years, and will be depreciated over 5 years to zero using the straight-line method. The plant will have no salvage value after five years. Net working capital requirements are negligible for this project. Assume there are no taxes in Middle-Earth, and that the appropriate discount rate for the project is ten percent. How many rings per year must OneRing sell in order to break even?arrow_forwardBased on the following sensitivity report, what would be the impact of changing the objective function coefficient for Product_1 to 12 and changing the objective function coefficient for Product 3 to 18?arrow_forward
- To illustrate these different approaches to Production Planning, identify to most appropriate Production Planning and Manufacturing approach the following industrial scenarios A company that manufactures tinned custard with predicted sales volumes of 6 million tins per yeararrow_forwardHow might an awareness of how a quantity changes over time help make a decision in daily life? What examples can you think of related to something measurable changing over time from experience?arrow_forwardAs purchasing agent for Eynan Enterprises in Richmond, Virginia, you ask your buyer to provide you with a ranking of "excellent" (worth 4 points), "good" (3 points), "fair" (2 points), or "poor" (1 point) for a variety of characteristics for two potential vendors, Donna Inc. (D) and Kay Corp. (K). You suggest that "Products" total be weighted 0.4, the "Company" total be weighted 0.2, and the "Service" and "Sales" totals each be weighted 0.2. The buyer has returned the following ranking. Which of the two vendors would you select? Click the icon to view the rankings. Part 2 You should choose vendor ▼ Donna Inc. Either Kay Corp. or Donna Inc. Kay Corp. , with a weighted score of ________. (Enter your response rounded to one decimal place.)arrow_forward
- The cost of a manufactured product generally consists of which of the following costs? Direct materials cost and direct labor cost only Direct labor cost, direct materials cost, and factory overhead cost Direct materials cost and factory overhead cost only Direct labor cost and factory overhead cost only Any costs we can possibly think of and bury in someone else’s budgetarrow_forwardWhich of the following scenarios accurately reflects the meaning of the profit leverage effect? Group of answer choices With a 7.6% profit margin, decreasing your cost of goods sold (COGS) by $10,000 increases your pre-tax profits by $10,000, but increasing your sales by $10,000 only increases your pre-tax profits by $760. When operating with a 7.6% profit margin, your cost of goods sold will be $10,000 as long as your sales exceed $10,000. With a 7.6% profit margin, every additional $10,000 in sales increases your pre-tax profits by $10,000, while every $10,000 saved in purchasing increases your pre-tax profits by just $760. If your profit margin is 7.6%, every $10,000 saved in purchasing lowers your COGS sold by $760.arrow_forwardSolve the following problem. Round dollar amounts to the nearest cent. Round other amounts to the nearest tenth. Write rates as percents to the nearest tenth of a percent.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.