Exam 6: A Quantitative Module

This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. The maximum regrets for this table are S1 = 5, S2 = 9, S3 = 12.

In a decision tree, which of the following is true?

Fixed costs for a product are $60,000. The product itself sells for $4.00 and it costs $1.00 to make each product. How will the break-even point for the product change if the variable cost per unit goes up to $1.50?

Production data for Streaks is shown. Using linear programming, the maximum number of running shoes that the plant can make is 250. Monthly Product

The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. Overall, the shop is expected to make $32,000.

A payoff matrix features strategies S1, S2, S3, and S4 and competitive strategies CA1, CA2, and CA3. In a short essay, explain how maximum regret can be calculated for an S1 strategy.

This payoff matrix gives potential dollar gain values in millions for strategies S1, S2, S3, and S4 for the Bent Fork National Bank and competitive strategies CA1, CA2, and CA3 for the Straight Spoon Bank. If Bent Fork is optimistic, which strategy will it choose?

The purchase price of a product has no influence on calculating EOQ.

A pessimistic manager will typically follow a minimin choice.

The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. The shop is likely to make $105,000, the sum of both projections.

With choice S1, a manager sees gains of $10 million and $6 million. With choice S2, a manager sees gains of $12 million and $8 million. Only a pessimistic manager would choose S1.

Return on investment measures the ratio of total profits to total assets.

Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. What is the maximum number of units that the factory can make of either type of phone component? Monthly Product

This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. If Sam chooses S4, how is he feeling about the business climate?

A manager uses break-even analysis to find out how many units of a product he needs to sell to make a profit of zero.

Fixed costs for a product are $30,000. The product itself sells for $3.00 and it costs $1.50 to make each product. How can the plant decrease the break-even point by 5000 units?

Production data for Streaks is shown. Using linear programming, if the plant makes 100 pairs of running shoes and 100 pairs of soccer shoes, it ends up with $3600 in profit. Monthly Product

In a short essay, explain how the break-even point (BE) changes with variables TFC (total fixed costs), P (unit price), and VC (variable cost per unit).

Which of the following best defines regret in a payoff matrix?

For break-even analysis, which of the following is a fixed cost for a doughnut shop?