20x Level

Business Statistics help??

Ive been trying to figure this out for hours, can someone help me out please!
Thank you in advance :)

Retread, a tire manufacturer, wants to select one of the feasible designs for a new longer wearing radial tire. The manufacturing cost of each type of tire is shown below.

Tire Design |Fixed Cost per year |Variable Cost per tire
A | $60,000 | $30
B | 90,000 | 20
C | 120,000 | 15

(They're in columns)

There are 3 possible levels of annual demand: 5,000 tires, 8,000 tires and 11,000 tires. The respective probabilities are 0.2, 0.4 and 0.4. The selling price will be $85 for A. $70 for B and $70 for C.

QUESTION:
1) Based on expected profit, which design should be produced?

2) What is the expected profit for that design? $

I got DESIGN C and 521000 :S Im not to sure if that is right though.

16 hours ago
- 3 days left to answer.

A week ago I did a similar problem:

A table will be much easier to visualize this problem

let x be number of tires, y be the cost price, z be the selling price and p be the profit

COST:
tire A: y = 60000 + 30x ; level 5000 , y = 210000; level 8000 , y = 300000; level 11000 , y = 390000
tire B: y = 90000 + 20x ; level 5000 , y = 190000; level 8000 , y = 250000; level 11000 , y = 310000
tire C: y = 120000 + 15x ; level 5000, y = 195000; level 8000 , y = 240000; level 11000 , y = 285000

SELLING:
tire A: z = 85x ; level 5000, z = 425000; level 8000, z = 680000; level 11000, z = 935000;
tire B: z = 70x ; level 5000, z = 350000; level 8000, z = 560000; level 11000, z = 770000;
tire C: z = 70x ; level 5000, z = 350000; level 8000, z = 560000; level 11000, z = 770000;

PROFITS = SELLING - COST:
tire A: level 5000, p = 215000 ; level 8000, p = 380000; level 11000, p = 545000;
tire B: level 5000, p = 160000; level 8000, p = 310000; level 11000, p = 460000;
tire C: level 5000, p = 155000; level 8000, p = 320000; level 11000, p = 485000;

1. Tire A should be produced
2. Expected Profit = 0.2(215000) + 0.4(380000) + 0.4(545000) = $413000

Find 20x Level On eBay Below:

CST Berger 55 SAL20NG 20X Automatic Level
CST Berger 55 SAL20NG 20X Automatic Level
$130.00
CST BERGER 54 190BN 20X SPEED LINE LEVEL PRICE REDUCED
CST BERGER 54 190BN 20X SPEED LINE LEVEL PRICE REDUCED
$299.95
CST BERGER 20X AUTOMATIC LEVEL SAL20ND INCLUDES HARDCASE GREAT CONDITION
CST BERGER 20X AUTOMATIC LEVEL SAL20ND INCLUDES HARDCASE GREAT CONDITION
$169.99
CST berger 20X Magnification 200 foot Range Transit Level
CST berger 20X Magnification 200 foot Range Transit Level
$197.99
Vintage Fuji Koh Path 20x Auto Level S 302 in Hard Case Excellent Working Order
Vintage Fuji Koh Path 20x Auto Level S 302 in Hard Case Excellent Working Order
$195.00
New AL120 Automatic Level Meter Tester 25mm 20X Magnification
New AL120 Automatic Level Meter Tester 25mm 20X Magnification
$139.00
CST Berger 20X SAL Series Automatic Level 55 SAL20ND w Hard Case
CST Berger 20X SAL Series Automatic Level 55 SAL20ND w Hard Case
$79.00
CST berger 54 190K Speed Line 20X Transit Level Package with Horizontal Circle
CST berger 54 190K Speed Line 20X Transit Level Package with Horizontal Circle
$308.06
CST BERGER 20X AUTOMATIC LEVEL w HARD CASE  ACCESSORIES
CST BERGER 20X AUTOMATIC LEVEL w HARD CASE ACCESSORIES
$89.95
SOKKIA C20 Surveyors Automatic 20x Optic Level with Carrying Case
SOKKIA C20 Surveyors Automatic 20x Optic Level with Carrying Case
$220.00
DeWALT DW092PK 20x Transit Level Rod Tripod Tool Package + Case
DeWALT DW092PK 20x Transit Level Rod Tripod Tool Package + Case
$409.99
CST berger 20X Spd Ln Transit Level
CST berger 20X Spd Ln Transit Level
$300.84
Leica Jogger 20X Automatic Level 762263
Leica Jogger 20X Automatic Level 762263
$219.99
Nikon 20X Automatic Auto Level Model AX 2S HGA41210
Nikon 20X Automatic Auto Level Model AX 2S HGA41210
$229.00
CST berger 54 190K Speed Line 20X Transit Level Package with Horizontal Circle
CST berger 54 190K Speed Line 20X Transit Level Package with Horizontal Circle
$353.11
SitePro 25 TL20X 20 Power Transit Level
SitePro 25 TL20X 20 Power Transit Level
$223.66
Nikon AX 2S Automatic Level 20x Magnification
Nikon AX 2S Automatic Level 20x Magnification
$214.00
GU2304 Silverline Automatic Optical Level 20 x Magnification Building DIY Tool
GU2304 Silverline Automatic Optical Level 20 x Magnification Building DIY Tool
$228.07
SitePro Hand Tools 25 TL20X 20 Power Transit Level
SitePro Hand Tools 25 TL20X 20 Power Transit Level
$242.78
Dewalt DW090 Level Transit 20X w Hard Case  Tripod Pre owned Free Shipping
Dewalt DW090 Level Transit 20X w Hard Case Tripod Pre owned Free Shipping
$149.99
CST berger 20X Magnification 200 foot Range Speed Line Transit Level
CST berger 20X Magnification 200 foot Range Speed Line Transit Level
$271.05
Trimble Spectra Precision Laser AL120 20X Automatic Optical Level
Trimble Spectra Precision Laser AL120 20X Automatic Optical Level
$299.00
CST Berger SAL Series Automatic Level 20x With Hard Case
CST Berger SAL Series Automatic Level 20x With Hard Case
$199.00
Level Kit W tripod rod 20x Pwr
Level Kit W tripod rod 20x Pwr
$261.45
CST BERGER 20 X AUTOMATIC LEVEL INCLUDES HARD CASE
CST BERGER 20 X AUTOMATIC LEVEL INCLUDES HARD CASE
$159.00
DEWALT DW092PK 20X Transit Level Package with Tripod Rod and Carrying Case
DEWALT DW092PK 20X Transit Level Package with Tripod Rod and Carrying Case
$858.46
Leica NA320 20X Automatic Level 840381
Leica NA320 20X Automatic Level 840381
$219.99
CST Berger 55 SLVP20ND 20x Metal Housing Fine Motion Auto Adjusting Level w Rod
CST Berger 55 SLVP20ND 20x Metal Housing Fine Motion Auto Adjusting Level w Rod
$269.99
Trimble Spectra Precision Laser AL120 20X Automatic Optical Level Survey
Trimble Spectra Precision Laser AL120 20X Automatic Optical Level Survey
$89.99
HILTI POL 10 OPTICAL LEVEL 20X MAGNIFICATION 425444
HILTI POL 10 OPTICAL LEVEL 20X MAGNIFICATION 425444
$120.00
Leica Na720 20X Auto Level 641982
Leica Na720 20X Auto Level 641982
$345.00
DEWALT DW090PK 20X Builders Level Package with Tripod and Rod Automatic Levels
DEWALT DW090PK 20X Builders Level Package with Tripod and Rod Automatic Levels
$296.99


Recently Purchased 20x Level:


new cstberger 20x automatic level sal20nd includes hardcase, black case 20x power magnification transit level package with tripod included, cstberger 20x sal series automatic level 55sal20nd whard case, dewalt dw090pk 20x builders level package with tripod and rod automatic levels, cstberger sal series automatic level 20x with hard case, trimble spectra precision laser al120 20x automatic optical level, dewalt dw090 level transit 20x w hard case amp; tripod preowned free shipping, sitepro 25tl20x 20power transit level, cstberger 20x automatic level w hard case amp; accessories , trimble spectra precision laser al120 20x automatic optical level survey , dewalt dw092pk 20x transit level package with tripod rod and carrying case , cstberger 20 x automatic level includes hard case , level kit wtripodrod 20x pwr, cstberger 54190k speed line 20x transit level package with horizontal circle , sokkia c20 surveyors automatic 20x optic level with carrying case, hilti pol 10 optical level 20x magnification 425444, vintage fujikoh path 20x autolevel s302 in hard case excellent working order, sitepro hand tools 25tl20x 20power transit level, leica na720 20x auto level 641982, cstberger 20x spd ln transit level, dewalt dw092pk 20x transit level rod tripod tool package case, cstberger 54190k speed line 20x transit level package with horizontal circle, cstberger 20x magnification 200foot range speed line transit level, cstberger 20x magnification 200foot range transit level, cst berger 54190bn 20x speed line level price reduced, leica jogger 20x automatic level 762263, cst berger 55slvp20nd 20x metal housing fine motion auto adjusting level w rod, nikon ax2s automatic level 20x magnification, leica na320 20x automatic level 840381 , gu2304 silverline automatic optical level 20 x magnification building diy tool, cstberger 55sal20ng 20x automatic level, new al120 automatic level meter tester 25mm 20x magnification, cstberger 20x automatic level sal20nd includes hardcase great condition, nikon 20x automatic auto level model ax2s hga41210



Comments are closed.