Question content areaPart 1The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: SiteFixed Cost Per YearVariable Cost Per UnitAtlanta$120,000$5Burlington70,0004Cleveland95,0003Denver45,00011 Part 2 The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below:Fixed Cost PerYeara) Graph the total-cost lines for the four potential sites.OA.نCost (1,000s of $)Cost (1,000s of $)300-250-200-150-100-50-0-300-250-200-150-100ClevelandAtlanta50-BurlingtonDenver010 20 30 40Volume (1,000s of units)וויDenver AtlantaClevelandBurlington0+……….0 10 20 30 40Volume (1,000s of units)SiteAtlantaBurlingtonClevelandDenver$120,00070,00095,00045,000Variable Cost Per Unit$5B.O D.Cost (1,000s of $)Cost (1,000s of $)I WAS300-250-200-150-100-50-4311300250-200-150-100-50-0-Burlington————0 10 20 30 40Volume (1,000s of units)Atlanta DenverClevelandDenverBurlingtonClevelandAtlanta-----10 20 30 40Volume (1,000s of units)N

The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: Fixed Cost Per Year a) Graph the total-cost lines for the four potential sites. O A. O C. Cost (1,000s of $) Cost (1,000s of $) 300-3 250- 200- 150 100- 50- 0- 300- 250- Cleveland 200- 150- 100- 50- Atlanta 0 10 20 30 40 Volume (1,000s of units) Burlington Denver Denver Atlanta Cleveland Burlington 0- 0 10 20 30 40 Volume (1,000s of units) Q Q Site Atlanta Burlington Cleveland Denver $120,000 70,000 95,000 45,000 Variable Cost Per Unit $5 4 3 O B. D. Cost (1,000s of $) Cost (1,000s of $) 300- 250- 200- 150- 100- 50- Burlington 0 0 10 20 30 40 Volume (1,000s of units) 300-3 250- 200- 150- 100- 11 50- 0- Atlanta Denver Cleveland Denver Burlington Cleveland Atlanta 0 10 20 30 40 Volume (1,000s of units)

The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: Fixed Cost Per Year a) Graph the total-cost lines for the four potential sites. O A. O C. Cost (1,000s of $) Cost (1,000s of $) 300-3 250- 200- 150 100- 50- 0- 300- 250- Cleveland 200- 150- 100- 50- Atlanta 0 10 20 30 40 Volume (1,000s of units) Burlington Denver Denver Atlanta Cleveland Burlington 0- 0 10 20 30 40 Volume (1,000s of units) Q Q Site Atlanta Burlington Cleveland Denver $120,000 70,000 95,000 45,000 Variable Cost Per Unit $5 4 3 O B. D. Cost (1,000s of $) Cost (1,000s of $) 300- 250- 200- 150- 100- 50- Burlington 0 0 10 20 30 40 Volume (1,000s of units) 300-3 250- 200- 150- 100- 11 50- 0- Atlanta Denver Cleveland Denver Burlington Cleveland Atlanta 0 10 20 30 40 Volume (1,000s of units)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 49P: If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60...

See similar textbooks

Similar questions

#28Even though independent gasoline stations have been having a difficult time, Susan Solomon hasbeen thinking about starting her own independent gasoline station. Susan’s problem is to decide howlarge her station should be. The annual returns will depend on both the size of her station and a numberof marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susandeveloped the following table: GOOD FAIR POORSIZE OF MARKET MARKET MARKETFIRST STATION ($) ($) ($)Small 50,000 20,000 –10,000Medium 80,000 30,000 –20,000Large 100,000 30,000 –40,000Very large 300,000 25,000 –160,000For example, if Susan constructs a…
Asilekpe Company Limited is considering constructing a borehole in the village of Adukofe. The construction would cost Gh₵2 million and there will be no cost of maintenance. The following table shows the company’s anticipated demand over the lifetime of the bridge: Price per gallon (Gh₵) Number of gallons 8 0 7 100000 6 200000 5 300000 4 400000 3 500000 2 600000 1 700000 0 800000 a. If the company were to construct the borehole what would be its profit-maximizing price? Would that be the efficient level of output? Explain your answer.b. If the company is interested in maximizing profit, should it construct the borehole? What would be its profit or loss?c. If the government were to construct the borehole, what price should it charge? d. Should the government construct the borehole? Explain.
XYZ Co. has provided the following data seeking your advice on the optimum investment strategy: Investment at the beginning of the year Net return data of selected investments Amount P Q R S available (£) 1 95 80 70 60 70 2 75 65 60 50 40 3 70 45 50 40 90 4 60 40 40 30 30 Maximum Investment (£) 40 50 60 60 The following additional information is also provided: o P, Q, R and S represent the selected investments o The company has decided to have four years investment plan o The policy of the company is that the amount invested in any year will remain so until the end of the fourth year o The values in the table represent net returns on investment of £1 till the end of the planning horizon Determine the optimal investment strategy. You may use the transportation technique
Consider the info provided below as well as the financial statements and answer the questions that follow.Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co. For 2019 and 2020 respectively :Sales price per unit R15 and R19Variable cost per unit R6 and R7Fixed cost (FC) per annum R650 000 and R 855 500Fixed cost per unit R3 and R4Current assets R450 600 and R560 700Current liabilities R510 000 and R780 000Retained profit R21 809 and R17 600Net Sales R2 900 320 and R 3 100 100Cost of sales R390 000 and R475 000 Q.1 Calculate the break‐even point for Pearson & Litt for 2019 and 2020. Q.2 Compare the results of the 2019 and 2020 break‐even point and explain why there might be a difference.
[6] Please carefully read the following scenario:(Image attached)The total number of decision variables in this problem is:A. 5B. 3C. 4D. 2 [7] The total number of constraints in this problem, including non-negativity constraints is: A. 9 B. 5 C. 3D. 7
Type the linear program, optimal solution, and objective function value in a word document. Submit your excel file. An investor wishes to invest some or all of his $12.5 million in a diversified portfolio through a commercial lender. The types of investments, the expected interest per year, and the maximum allowed percentage investment he will consider are shown on the following table. He wants at least 35% of his investments to be in nonmortgage instruments and no more than 60% to be in high-yield (and high-risk) instruments (i.e., expected interest > 8%). How should his investment be diversified to make the most interest income? Investment Expected Return Maximum Allowed Low-income mortgage loans 6.50% 20% Conventional mortgage loans 6.00% 30% Government sponsored mortgage loans 8.25% 25% Bond investments 5.75% 15% Stock investments 8.75% 18% Futures trading 9.25% 10%
During the year, Brownout Company experienced the following power outages:Number of Power Outages Per Month Number of Months 0 3 1 2 2 4 3 3 12Each power outage results in out of pocket costs of P400. For P500 per month, the company can lease an auxiliary generator to provide power during outages. If the company leases an auxiliarygenerator next year, the estimated savings (or…
Consider a small Oil production firm with 5 competing oil production projects, A - E. The table below shows the estimated long-term profit (Net Present Value) for each project as well as the amount of investment capital required to start the project. You have been contacted to help select the best combination of projects to maximize the Net Present Value subject to the capital investment limit of $32 million. Production Project A B C D E Estimated Profit (millions) 25 20 19 28 21 Capital Required (millions) 11 8 14 19 13 Formulate a Binary Integer Programming (BIP) model on a spreadsheet. Solver the model using Solver.
Dennison Manufacturing makes large helical springs used in aircraft landing gear. The company has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about the manufacturing and shipping costs of locating in each of these four cities: Fixed Costsper Year Variable ManufacturingCosts per Unit Variable ShippingCosts per Unit Phoenix Buffalo Seattle Atlanta $300,000 $600,000 $1,500,000 $1,750,000 $70.00 $56.00 $36.00 $42.00 $5.00 $4.00 $2.00 $5.00 a. Use break-even point analysis to determine where Dennison should locate.b. Based solely on break-even quantity, if Dennison’s manufacturing forecast for the foreseeable future is 40,000 units annually, where should he locate?
Assume the maximum demand for Super is 600,000 barrels. What is the optimal maximum profit? Hints: There are six decision variables are as follows: R1: # of barrels of ingredient 1 used in Regular fuel R2: # of barrels of ingredient 2 used in Regular fuel R3: # of barrels of ingredient 3 used in Regular fuel S1: # of barrels of ingredient 1 used in Super fuel S2: # of barrels of ingredient 2 used in Super fuel S3: # of barrels of ingredient 3 used in Super fuel Some calculations you would need in the constraints: The total # of barrels for Regular would be R1+R2+R3. The total # of barrels for Super would be S1+S2+S3. The total # of barrels of Ingredient 1 would be R1+S1. The total # of barrels of Ingredient 2 would be R2+S2. The total # of barrels of Ingredient 3 would be R3+S3.
A goldsmith makes two types of jewelry. A model A ring is made with 1 g of gold and 1.5 g of silver and sells for 25 UM.Another model B ring sells for 30 UM and is made of 1.5 g of gold and 1 g of silver. If you only have 750 gof each metal, how many rings should be made of each type to obtain maximum profit?Requested:- Make Initial Table of the problem.- Obtain the Case Variables- Obtain the Objective Function- Get Restrictions- Create the Simplex Table- Obtain the Optimal Solution and the Slack Variables.Solve this operational research exercise.
Airway (a Midwestern department store chain) andCorvett (an Eastern department store chain) are determiningwhether to expand their geographical bases. The only viablemanner by which expansion might be carried out is for achain to open stores in the other’s area. If neither chainexpands, then Airway’s profits will be $3 million andCorvett’s will be $2 million. If Airway expands and Corvettdoes not, then Airway’s profits will be $5 million, andCorvett will lose $2 million. If Airway does not expand andCorvett does, Airway will lose $1 million, and Corvett willearn $4 million. Finally, if both chains expand, Airway willearn $1 million and Corvett will earn $500,000 in profits.Determine the equilibrium points, if any, for this game.