The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begi

[answerhappygod]

The Management Of Madeira Manufacturing Company Is Considering The Introduction Of A New Product The Fixed Cost To Begi 1 (31.01 KiB) Viewed 11 times

The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $25,000. The variable cost for the product is expected to be between $14 and $20 with a most likely value of $18 per unit. The product will sell for $50 per unit. Demand for the product is expected to range from 500 to 1900 units, with 1300 units the most likely demand. Let c = variable cost per unit x = demand a. Develop the profit model for this product. Enter your answer in the form of an expression. (Example: (c+10)x+800) Profit b. Provide the base-case, worst-case and best-case analyses. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Base case: Profit = $ Worst case: Profit = $ Best case: Profit = $ c. Discuss why simulation would be desirable. A simulation provides doesn't provide the probability of each scenario.