Problem 11-10 (Algo)You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the day'spaper for $0.40 a copy. You sell a copy of the San Pedro Times for $1.30. Daily demand is distributed normally with mean = 325 andstandard deviation = 65. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.a. How many copies of the San Pedro Times should you buy each morning?Note: Use Excel's NORM.S.INV() function to find the z value. Round your z value and service level to 2 decimal places and finalanswer to the nearest whole number.Optimal order quantityb. Based on a, what is the probability that you will run out of stock?Note: Round your answer to the nearest whole percent.Probability%

Given:Price P=$1.30Cost C=$0.40Salvage Value S= 0mean µ=325standard deviation σ=65Daily demand is…

Answered: Problem 11-10 (Algo) You are a…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 14PROB

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The New York Times sells a weekly magazine which advertises local second-hand goods. The owner can buy the magazine for 15 cents each and sell them at the retail price of 25 cents. At the end of each week unsold magazines are obsolete and have no value.The owner estimates a probability distribution for weekly demand which looks like this:Weekly demand in units Probability10 0.2015 0.5520 0.25 1.00(i) What is the EV of demand? (ii) If the owner is to order a fixed quantity of magazines per week how many should that be? Assume no seasonal variations in demand.
#15 Expenses for a Pizza restaurant include raw material for pizza at $5.00 per slice, $124.00 as monthly rental and $25.00 monthly as insurance. Lost sale expense is considered to be $6.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month. Today the restaurant prepared 200.00 pizza slices and sells them for $14.00/slice. There was a party at a nearby office so the demand for pizza went up to 229.00 slices. How much profit did the restaurant earn today? Submit Answer format: Currency: Round to: 0 decimal places.
5. The Fortune Supermarket has on the average about 240 customers shopping in the store between 8-12 AM and 2-6 PM on Saturdays. In deciding how many cast registers to keep open every Saturday, the owner considers the cost associated with customers waiting time and the cost of employing additional checkout clerks. average of P25 per hour. When only one clerk is on duty, waiting time per customer is about ten minutes; when two clerks are working, the waiting time is six minutes; when three clerks, it is four minutes; and for four clerks, it is three minutes. satisfaction survey and has estimated that the store suffers approximately P20 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines. Determine the optimum number of checkout clerks to have on duty every Saturday in order to minimize the total Checkout clerks are paid an The owner has conducted customer expected cost.
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Question 7 (Breakeven Analysis). You decided to sell Only coffee using Nespresso machine during Ramadan The Nespresso Machine Cost is 3,000 SAR Every cup of coffee required one brown sugar that cost 0.5 SAR, one disposable cup costs 1.5 SAR, and one coffee capsule costs 3 SAR If you sell one coffee for 10 SAR Option 2 Option 1 No Employee Sales quantity = 1500 per month Selling Price 10 SAR per coffee One more Employee and his salary is 4000 Expected sales quantity = 2500 per month Selling Price 10 SAR per coffee What is the breakeven quantity? What is the breakeven quantity? What is the profit? What is the profit? Which option is better?
The KVS Pharmacy is open from 10:00 A.M. to 8:00 P.M.,and it receives 200 calls per day for delivery orders. It coststhe pharmacy $25 to send out its cars to make deliveries.The pharmacy estimates that each minute a customerspends waiting for their order costs the pharmacy $0.20 inlost sales. a. How frequently should KVS send out its delivery carseach day? Indicate the total daily cost of deliveries. b. If a car could only carry six orders how often would de-liveries be made and what would be the cost?
11. ALGEBRA Fatima Sheroud sells children's clothing for The Grasshopper Shoppe. She is paid weekly on a straight commission of 4% on sales of $5,000.00 or less and 5% on sales in excess of $5,000.00. One week Fatima had a gross pay of $594.50. What were her total sales for that week? nts reserved.
The Katie's Card Shop sells calendars with different Colonial pictures shown for each month. The once-a- year order for each year's calendar arrives in September. From past experience the September to March demand for the calendars can be approximated by a normal distribution with mean 400 and standard deviation 100. The calendars cost $2 each, and Katie sells them for $3 each. a) If Katie throws out all unsold calendars at the end of March (i.e., salvage value is zero), how many calendars should be ordered? f Katie reduces the calendar price to $ 0.5 at the end of March and can sell all surplus calendars at this price, how many calendars should be ordered? show me how to solve this step by step in excel you are talking to a stupid person I need you to tell me in Cell A1 what to enter and so forth
The Branding Iron Company sells its irons for $57 apiece wholesale. Production cost is $47 per iron. There is a 32% chance that wholesaler Q will go bankrupt within the next eight months. Q orders 1,000 irons and asks for eight months’ credit. Assume that the discount rate is 12% per year, there is no chance of a repeat order, and Q will pay either in full or not at all. a. Should you accept the order? Provide your explanations with calculations b. What is the break-even probability of default for wholesaler Q in this order? c. Suppose that customers who do not default become repeat customers and place the same order every period forever. What is the break-even probability of default?
Rio Coffee Shoppe sells two coffee drinks—a regular coffee and a latte. The two drinks have the following prices and cost characteristics: The monthly fixed costs at Rio are $9,176. Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 percent lattes. Required: How many cups of regular coffee and lattes must Rio sell every month to break even?
Suppose that the demand for a magazine is 2200 copies each week if the magazine is given away for free and drops to 1975 each week if the price is $5 per copy. Find the demand function qD and use it to answer the following questions. You may want to look at pages 71 through 73 in the notes (videos 52 and 53).a. Fill in the blanks below to interpret the slope of the demand function. For every $ Blank 1. Calculate the answer by read surrounding text. increase in price, Blank 2. Calculate the answer by read surrounding text. fewer copies will be sold.b. Determine how many copies of the magazine would be sold each week if the price was set at $11 per copy. Blank 3. Calculate the answer by read surrounding text. copies
chapter 4 14. The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,200 total list price. Delivery typically requires five weeks, and freight averages 2.5% of total billed cost. Trade discounts on the merchandise are 40% and 10%; terms are 2/10, n/30. A wholesaler located in the retailer's area stocks many of the same stuffed animals. he does not require a minimum order and will deliver at no charge in the area if the order has a total billed cost of at least $500. The manufacturer and wholesaler base cost on the same list price; however the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15, n/30. What is the difference in the total net cost (including freight) of merchandise with a total list price of $1,200 from these two vendors? (Present your answer with a comma separator, dollar-sign, and rounded to the penny (i.e. $1,234.56).)

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