OPERATIONAL RESEARCH

1. The Black Diamond Board Company produces snowboards. The fixed monthly production cost is $15,000 and the variable cost per snowboard is $35. The snowboards sell for $130 a piece. What is the break-even volume for the company? What is the total cost, revenue, and profit for selling 210 boards? (Points : 4) 
Question 2. 2. Management science is (Points : 2)a new and poorly established discipline in business.
a philosophy of approaching problems in a logical manner.
just a collection of techniques.
fundamentally different from operations research.
credited with decreasing the efficiency of business firms.
Question 3. 3. Julia makes handmade wreaths. Her fixed costs for equipment and workspace are $350 per week. The variable cost per wreath in materials is $13. She sells the wreaths for $28 each. Find the break-even point for how many wreaths she must sell in a month. How much profit does she make in a month if she sells 73 wreaths? (Points : 3) 
Question 4. 4. Bradley is trying to decide if he should buy a new mower for his business. Select the best decision using the maximax and maximin criteria using the payoff table below.Decision                              Economy improves             Economy worsens
Buy mower                           $12,500                                 -$4,500
Don’t buy mower                   $5,250                                    $2,400 (Points : 3) 
Question 5. 5. Should Jonathan buy a new computer? Evaluate the payoff table below using the maximin and minimax regret criteria.Decision                                       New job               No new job
Buy new computer                         $4,500                   -$600
Buy used computer                        $3,735                   $400
Don’t buy computer                        $1,225                   $1,225 (Points : 4) 
Question 6. 6. Stephanie runs a hair salon. She is trying to decide if she should hire another hairdresser. Determine what choice she should make using the Hurwicz (α = 0.4) and equal likelihood criteria.Decision                            Increased demand          Steady demand
Hire                                    $4,175                                -$1,600
Do not hire                          $2,440                                 $1,954 (Points : 4) 
Question 7. 7. Jericho Toolshop is considering purchasing another power tool. Use the payoff table to determine the expected profit or loss for each purchase, and determine the optimal purchase.Purchase            Gain clients (0.3)             No change (0.5)                       Lose clients (0.2)
Bandsaw                             $2,450                                   $1,875                                                   -$400
Table saw                            $5,560                                   $700                                                       -$3,450
Router                                 $1,900                                   $1,200                                                   -$260
Sander                                $1,550                                   $960                                                       $430 (Points : 5) 
Question 8. 8. Maurice’s Gift Shop stocks holiday themed paperweights from a local glass supplier. Each paperweight costs Maurice a total of $12, and he can sell them for $18 a piece. After the holidays he will only be able to sell them for $10 a piece. He estimates demand for the paperweights in the table below. Generate a payoff table, and compute the expected value for each alternative. How many paperweights should Maurice purchase?Demand               Probability
8                              0.10
9                              0.15
10                            0.30
11                            0.25
12                            0.15
13                            0.05 (Points : 8) 

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