# Produces 1 2 Businessquantitative Analysis Prob

Produces 1 2 Businessquantitative Analysis Prob

*Use Excel to solve the problems. Each problem (including all the sub-parts) should appear on a different tab/sheet on Excel. Please Label accordingly.*

1-1. *XYZ, Inc*., is considering the addition of another tower in one of the fast growing cities to improve mobile service and meet the growing demand. The primary location being considered will have a fixed cost of $10,000 per month and variable cost of $25 per customer served. Each customer is charged $50 on average in the area.

Required:

(a). What volume (number of customers) per month is required in order to break even? What would be the profit made at this level?

(b). What profit would be realized on a monthly volume of 500 customers?

(c). What volume is needed to obtain a profit of $20,000 per month?

(d). What volume is needed to provide a monthly revenue of $120,000?

(e). What should the price be if *XYZ* wants to make a monthly profit of $10,000 and they have 1,000 customers? Note: Profit = Q * (R-v) – FC.

(f). Plot the total cost and total revenue lines to graphically show the break-even point.

HINT: Use at least a zero, the break-even point and a few other points, one above and one below BEP.

Then compute the total variable cost, fixed cost and total revenue corresponding to the selected points to draw a graph!

1-2. Zoe Smith is the manager of a small office support business that supplies copying, binding, and other services for local companies. Zoe must replace a worn-out copy machine that is used for the black and white copying. Two machines are being considered, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $600, and there is a cost of $0.010 per page copied. Machine 2 has a monthly lease cost of $400, and there is a cost of $0.015 per page. Consumers are charged $0.05 per page for copies.

Required:

(a.)What is the break-even point for each machine?

(b).If Zoe expects to make 10,000 copies per month, what would be the cost for each machine?

(c). If Zoe expects to make 30,000 copies per month, what would be the cost for each machine?

(d).At what volume (the number of copies) would the two machines have the same monthly cost? What would be the total revenue for this number of copies?

(e).Plot the relevant data on a graph (and based on the response to d above) and show when each machine should be used.

1-3. What are the expected value and standard deviation of the following probability distribution?

Random Variable X | Probability | |

1 | 0.05 | |

2 |
0.05 | |

3 | 0.10 | |

4 | 0.10 | |

5 | 0.15 | |

6 | 0.15 | |

7 | 0.25 | |

8 | 0.15 |

1-4. The time to complete a construction project is normally distributed with a mean of 60 weeks and a standard deviation of 4 weeks.

( a). What is the probability the project will be finished within 58 weeks?

(b). If the due date of this project is set at 60 weeks, what is the probability that the contractor will have to pay a penalty (i.e., the project will not be completed on schedule)?

( c). What is the probability that the project will be finished in 66 weeks or less?

(d). What is the probability that the project will take longer than 65 weeks?

1-5. *EverRight*, a leading manufacturer of quality nails, produces 1-, 2-, 3-, 4-, and 5-inch nails for various uses in the production process. If there is an overran or the nails are slightly defective, they are placed in a common bin. Yesterday, 651 of the 1-inch nails, 243 of the the 2-inch nails, 41 of the 3-inch nails, 451 of the 4-inch nails, and 33 of the 5-inch nails were placed in the bin.

Required:

(a). What is the probability of reaching into the bin and getting a 4-inch nail?

(b). What is the probability of getting 5-inch nail?

(c.) If a particular application requires a nail that is 3 inches or shorter, what the probability of getting a nail that will satisfy the requirements of the application?

Use Excel to solve the problems. Each problem (including all the sub-parts) should appear on a different tab/sheet on Excel. Please Label accordingly.1-1. XYZ, Inc., is considering the addition of