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- Pls help with below homework. Mimi's is developing a Fiery Habanero muffin, which will NOT compete with anything Mimi's currently offers. Unit contribution margin for the new Fiery Habanero muffin would be $3.38. Contribution margin for the company's Banana Nut muffin is $3.25 per unit. Mimi's expects to sell 45,000 units of the new muffin, if it is introduced. Compute weighted contribution margin for the new muffin. (Rounding: penny.)Please answer only a. & b. Oscar has owned a Ford automobile dealership for over 25 years. Since he has been heavily involved in the sales of cars, Oscar believes that there are 3 different types of customers with the following willingness to pays: Sunroof Navigation System Customer A $3,000 $1,200 Customer B $1,800 $600 Customer C $150 $1,800 Although not realistic, assume that incremental costs are $0. As the owner of the dealerships, Oscar has the final say on pricing for each customer. Suppose that Oscar knows the willingness to pay of Customer A, B and C as soon as he meets them. What price should Oscar charge to each customer to maximize profits? What is the total amount of profits for the 3 customers and what is the total amount of consumer surplus for the 3 customers? Show your…Suppose a fim has two plants with the following costs Plant 1: C, -4a -3000 1,000.000 and Plart 2 -16-600g -2,000,000. At what output in the verage cost minimized in each plant? Plant 1 average costs are minimized at output q (Enter a numerio response using an integer)
- An increase in the cost of heating and cooling a building may not reduce NOI if these costs can be passed along to the companies that lease the space. true of falseIdentify True or False. Statement T or F 1. Ifyou decrease the holding cost by (1/100)h, your EoQ will decrease by (1/10)h. 2. After MRP II is called Manufacturing Resource Planning and not Material Requirements Planning. 3. If the lead time is larger than the cycle time, your order arrives at your facility at least one cycle later. 4. You reduce your backorder cost if you continue to increase your service level. 5. Newsboy model deals with one period only. 6. (Q. r) models do not deal with stochastic demand. 7. Uniform distribution may be used in EOQ. 8. Estimations with larger MSE values are more accurate than lower ones. 9. Zero inventory plan assumes chase strategy in aggregate planning. 10. EOQ models possess very robust cost functions. 11. If we reduce inventory, we have larger opportunity costs. 12. If you have uniform distribution for demand, you cannot calculate order quantity in Newsboy model. 13. You cannot estimate for period 8 if you are using MA(7). 14. You can estimate…State if the given statement is True/False As soom as MC starts rising, AVC also starts rising.
- Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets. The production manager of Bavarian Crystal Works estimates total and marginal production costs to be aq0 to noiinseu14 Isind TC = 10,000 + 40Q + 0.0025Q² and ivibe to l9v9i ani oi -MC = 40 + 0.005Q1oriism s Arol else noitee eaidT aigie s niged sW noilesimixam benistie iton to laval orfs.ot doagee sideixav, where costs are measured in U.S. dollars and Q is the number of wine decanters pro- duced annually. Because Bavarian Crystal Works is only one of many crystal produc- ers in the world market, it can sell as many of the decanters as it wishes for $70 apiece. Total and marginal revenue are tanad tan ait oT vtivins to briTR = 700 owd io anoilanut ed teoo where revenues are measured in U.S. dollars and Q is annual decanter production. a. What is the optimal level of production of wine decanters? What is the marginal revenue from the last wine decanter sold? and MR = 70 %3D b. What…Your friend Sarah is planning to open a hardware store. She estimates that it would cost $50,000 each month to rent the location and buy the inventory. In addition, she would have to quit her $3,000/month job at an insurance firm. Her revenue for the store would be $60,000 each month. What is her expected accounting profit per month if she opens the hardware store? A $10,000 B $60,000 C $5,000 D $50,000 E $55,000 F $45,000Problem 6Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its topselling product, almond croissants. The annual demandfor almond croissants is 12,000 units. The setup costs fora production run of the croissants is US$15. The holdingcost per unit per year is US$0.50. Production is mostefficient when 80 croissants are produced per day. Thecompany operates 300 days during a year.a What is the economic production quantity (EPQ)?b How many production runs will there by per year?c What is the maximum inventory level?d What is the total annual cost (in US dollars)?e What is the length of a production run in days?
- 1. A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $600,000 per month. The variable cost per thousand board feet is $125.50. The price charged will be determined byp = $550 – (0.4)D per 1.00 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume. b. What is the domain of profitable demand during a month?Biwei decides to set up a small business in NYC. The start-up cost is $1000 for a license and the estimated direct cost is $4 per output. After one year, Biwei’s business becomes profitable. Sonia plans to enter the same business in thesame area. What would be the cost facing Sonia? Does she bear the same cost as Biwei?PER-UNIT COST (Dollars) Jouet is a profit-maximizing firm producing toy trains-a capital-intensive good-which are sold in its home country, France, and abroad in Russia. Jouet chose foreign production as a method of penetrating the Russian market and has to decide whether it is more efficient to directly invest in ussia to establish a production subsidiary or to license the technology to a Russian firm to produce its goods. n the following graph, AVCR is the average variable cost curve of a Russian firm producing toy trains. (This curve represents costs such as labor nd materials.) The curve ATCsidiary represents the total unit costs Le Jouet will face if it establishes a subsidiary in Russia. ATCudary AVC Russia 15 20 4 60 75 90 105 120 130 150 PRODUCT (Thousands)