plz write down very specific solution and I will give a good rate. A donut makin
ID: 1131915 • Letter: P
Question
plz write down very specific solution and I will give a good rate.
A donut making company has won the right to sell donuts at a trade fair. The trade fair lasts for 1 day only. The comany is trying to decide how many staff members and donut machines to send. 1 staff member is required per 2,000 donuts and 1 machine is required per 3,000 donuts. Thus if they sent 2 machines and 2 people then they would be able to make at most 4,000 donuts. Of course if there are not enough customers then they will make less than this. Each staff person costs $120 per day and each machine that is taken costs $330 per day Each donut made costs $0.3 in materials and sells for $0.6. Donuts are made on demand, so there is no concem about spoilage of materials for the short time of the trade fair. The company expects that demand for donuts will be between 2,000 and 5,000. Fill in the payoff matrix below for the total profit made for each combination. Profits should be shown as positive, losses as negative. Answers should be to the nearest dollar. Demand for donuts 2,000 3,000 4,000 5,000 1 staff, 1machine | 2 staff,1 machine 2 staff,2 machines 3 staff, 2 machinesExplanation / Answer
Answer DEMAND FOR DONUTS
When we use
1 staff and 1 machine
we can produce 2000 donuts and total Fixed Cost incurred = 120 + 330 = 450 and Variable Cost = 0.3D. Here D denotes No. of donuts.
If demand of donuts = 2000, Then Profit = 0.6*2000 - 450 - 0.3*2000 = 150
If demand is is greater than 2000 then again His profit will be same as he cannot produce more than 2000 with 1 machine and 1 staff.
2 staff and 1 machine
we can produce 3000 donuts and total Fixed Cost incurred = 120*2 + 330 = 570 and Variable Cost = 0.3D. Here D denotes No. of donuts.
If demand of donuts = 2000, Then Profit = 0.6*2000 - 570 - 0.3*2000 = 30
If demand = 3000, profit = 0.6*3000 - 0.3*3000 - 570 = 330
If demand is is greater than 3000 then again His profit will be same as he cannot produce more than 3000 with 1 machine and 2 staff.
2 staff and 2 machine
we can produce 4000 donuts and total Fixed Cost incurred = 120*2 + 330*2 = 900 and Variable Cost = 0.3D. Here D denotes No. of donuts.
If demand of donuts = 2000, Then Profit = 0.6*2000 - 900 - 0.3*2000 = -300
If demand = 3000, profit = 0.6*3000 - 0.3*3000 - 900 = 0.
If demand = 4000, Profit = 0.6*4000-0.3*4000-900 = 300
If demand is greater than 3000 then again His profit will be same as he cannot produce more than 4000 with 2 machine and 2 staff.
3 staff and 2 machine
we can produce 6000 donuts and total Fixed Cost incurred = 120*3 + 330*2 = 1020 and Variable Cost = 0.3D. Here D denotes No. of donuts.
If demand of donuts = 2000, Then Profit = 0.6*2000 - 1020 - 0.3*2000 = -420
If demand = 3000, profit = 0.6*3000 - 0.3*3000 - 1020 = -120.
If demand = 4000, Profit = 0.6*4000 - 0.3*4000 - 1020 = 180.
If demand = 5000, Profit = 0.6*5000 - 0.3*5000 - 1020 = 480.
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