Cornerstones of Cost Management (Cornerstones Series)
3rd Edition
ISBN: 9781285751788
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Chapter 3, Problem 40P
1.
To determine
Write equation 2 and 4 in the form Y =a +bx
2.
To determine
Identify the forecasted sales for Company L.
3.
To determine
Explain the reason person L might prefer equation 3 to Equation 2.
4.
To determine
Explain the advantages and disadvantages of using equation 4 to
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Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. Both models use the same electronic components. After reviewing the components required and the profit for each model, the
firm found the following linear optimization model for profit, where L is the number of LaserStop models produced and S is the number of SpeedBuster models produced. Implement the linear optimization model on a spreadsheet and use
Solver to find an optimal solution. Interpret the optimal solution, identify the binding constraints, and verify the values of the slack variables.
Maximize Profit 123 L+ 137 S
18 L+11 S≤ 5000
6L+8S≤4500
L≥0 and S≥0
(Availability of component A)
(Availability of component B)
Implement the linear optimization model and find an optimal solution. Interpret the optimal solution.
The optimal solution is to produce LaserStop models and SpeedBuster models. This solution gives the
(Type integers or decimals rounded to two decimal places as…
Valencia Products make automobile radar detectors and assembles two models: LaserStop and SpeedBuster. Both models use the same electronic components. After reviewing the components required and the profit for each model, the firm
found the following linear optimization model for profit, where x is the number of LaserStop models produced and y is the number of SpeedBuster models produced. Graph the constraints and identify the feasible region. Then identify each of
the corner points and show how increasing the objective function value identifies the optimal solution.
Maximize Profit=124x+138y
19x+12y ≤ 3000
6x + 7y ≤ 2500
x20 and y≥0
Identify the graph of the feasible region. Choose the correct graph below.
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Identify the vertices of the given feasible region.
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Valencia Products make automobile radar detectors and assembles two models: LaserStop and SpeedBuster. Both models use the same electronic components. After reviewing the components required and the profit for each model, the firm
found the following linear optimization model for profit, where x is the number of LaserStop models produced and y is the number of SpeedBuster models produced. Graph the constraints and identify the feasible region. Then identify each of
the corner points and show how increasing the objective function value identifies the optimal solution.
Maximize Profit=124x+138y
19x+12y ≤ 3000
6x + 7y ≤2500
x≥0 and y≥0
OB.
800-
Ay
800-
Q
Q
408
406
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Identify the vertices of the given feasible region.
(0, 0), (0, 250), (157.89, 0)
(Type an ordered pair, using integers or decimals rounded to two decimal places as needed. Use a comma to separate answers as needed.)
The optimal solution is to produce LaserStop models and…
Chapter 3 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 3 - Why is knowledge of cost behavior important for...Ch. 3 - How does the length of the time horizon affect the...Ch. 3 - Prob. 3DQCh. 3 - What is the relationship between flexible...Ch. 3 - What is the relationship between committed...Ch. 3 - Describe the difference between a variable cost...Ch. 3 - Why do mixed costs pose a problem when it comes to...Ch. 3 - Why is a scattergraph a good first step in...Ch. 3 - What are the advantages of the scatterplot method...Ch. 3 - Prob. 10DQ
Ch. 3 - What is meant by the best-fitting line? Is the...Ch. 3 - When is multiple regression required to explain...Ch. 3 - Explain the meaning of the learning curve. How do...Ch. 3 - Assume you are the manager responsible for...Ch. 3 - Some firms assign mixed costs to either the fixed...Ch. 3 - Callies Gym is a complete fitness center. Owner...Ch. 3 - Corazon Manufacturing Company has a purchasing...Ch. 3 - Darnell Poston, owner of Poston Manufacturing,...Ch. 3 - Dohini Manufacturing Company had the following 12...Ch. 3 - Refer to Cornerstone Exercise 3.4 for data on...Ch. 3 - Prob. 6CECh. 3 - The controller for Dohini Manufacturing Company...Ch. 3 - Prob. 8CECh. 3 - Classify the following costs of activity inputs as...Ch. 3 - SmokeCity, Inc., manufactures barbeque smokers....Ch. 3 - Cashion Company produces chemical mixtures for...Ch. 3 - For the following activities and their associated...Ch. 3 - Prob. 13ECh. 3 - Vargas, Inc., produces industrial machinery....Ch. 3 - Penny Davis runs the Shear Beauty Salon near a...Ch. 3 - Shirrell Blackthorn is the accountant for several...Ch. 3 - Deepa Dalal opened a free-standing radiology...Ch. 3 - Prob. 18ECh. 3 - The controller of the South Charleston plant of...Ch. 3 - Lassiter Company used the method of least squares...Ch. 3 - Sweet Dreams Bakery was started five years ago by...Ch. 3 - Prob. 22ECh. 3 - Bordner Company manufactures HVAC (heating,...Ch. 3 - Sharon Glessing, controller for Janson Company,...Ch. 3 - The graphs below represent cost behavior patterns...Ch. 3 - Starling Co. manufactures one product with a...Ch. 3 - Prob. 27ECh. 3 - Prob. 28ECh. 3 - Prob. 29ECh. 3 - Prob. 30ECh. 3 - Rolertyme Company manufactures roller skates. With...Ch. 3 - St. Teresas Medical Center (STMC) offers a number...Ch. 3 - Big Mikes, a large hardware store, has gathered...Ch. 3 - Kimball Company has developed the following cost...Ch. 3 - The management of Wheeler Company has decided to...Ch. 3 - DeMarco Company is developing a cost formula for...Ch. 3 - Prob. 37PCh. 3 - Friendly Bank is attempting to determine the cost...Ch. 3 - Randy Harris, controller, has been given the...Ch. 3 - Prob. 40PCh. 3 - Harriman Industries manufactures engines for the...Ch. 3 - Thames Assurance Company sells a variety of life...
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