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Expected Profit Max

The document contains 6 scenarios with different unit sales, probabilities, revenues, salvage values, production costs, and expected profits. For each scenario, it lists the unit sales, probability of occurring, revenue from sales, and salvage value. It then calculates the fixed production cost, variable production cost, and profit for each scenario. Finally, it calculates the total expected profit by weighting the profit from each scenario by its probability.

Uploaded by

Jansher Valapra
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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92 views6 pages

Expected Profit Max

The document contains 6 scenarios with different unit sales, probabilities, revenues, salvage values, production costs, and expected profits. For each scenario, it lists the unit sales, probability of occurring, revenue from sales, and salvage value. It then calculates the fixed production cost, variable production cost, and profit for each scenario. Finally, it calculates the total expected profit by weighting the profit from each scenario by its probability.

Uploaded by

Jansher Valapra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Scenario Unit Sales Probability Revenue from sales Salvage Received

1 8000 0.11 1000000 0


2 10000 0.11 1250000 0
3 12000 0.27 1500000 0
4 14000 0.22 1750000 0
5 16000 0.18 2000000 0
6 18000 0.11 2250000 0

Scenario Unit Sales Probability Revenue from sales Salvage Received


1 8000 0.11 1000000 40000
2 10000 0.11 1250000 0
3 12000 0.27 1500000 0
4 14000 0.22 1750000 0
5 16000 0.18 2000000 0
6 18000 0.11 2250000 0

Scenario Unit Sales Probability Revenue from sales Salvage Received


1 8000 0.11 1000000 80000
2 10000 0.11 1250000 40000
3 12000 0.27 1500000 0
4 14000 0.22 1750000 0
5 16000 0.18 2000000 0
6 18000 0.11 2250000 0

Scenario Unit Sales Probability Revenue from sales Salvage Received


1 8000 0.11 1000000 120000
2 10000 0.11 1250000 80000
3 12000 0.27 1500000 40000
4 14000 0.22 1750000 0
5 16000 0.18 2000000 0
6 18000 0.11 2250000 0

Scenario Unit Sales Probability Revenue from sales Salvage Received


1 8000 0.11 1000000 160000
2 10000 0.11 1250000 120000
3 12000 0.27 1500000 80000
4 14000 0.22 1750000 40000
5 16000 0.18 2000000 0
6 18000 0.11 2250000 0
Scenario Unit Sales Probability Revenue from sales Salvage Received
1 8000 0.11 1000000 200000
2 10000 0.11 1250000 160000
3 12000 0.27 1500000 120000
4 14000 0.22 1750000 80000
5 16000 0.18 2000000 40000
6 18000 0.11 2250000 0

Inventory policy
8000
10000
12000
14000
16000
18000
Fixed Production Cost Variable Production Cost Profit per scenario
100000 640000 260000
100000 640000 510000
100000 640000 760000
100000 640000 1010000
100000 640000 1260000
100000 640000 1510000
Total expected profit

Fixed Production Cost Variable Production Cost Profit per scenario


100000 800000 140000
100000 800000 350000
100000 800000 600000
100000 800000 850000
100000 800000 1100000
100000 800000 1350000
Total expected profit

Fixed Production Cost Variable Production Cost Profit per scenario


100000 960000 20000
100000 960000 230000
100000 960000 440000
100000 960000 690000
100000 960000 940000
100000 960000 1190000
Total expected profit

Fixed Production Cost Variable Production Cost Profit per scenario


100000 1120000 -100000
100000 1120000 110000
100000 1120000 320000
100000 1120000 530000
100000 1120000 780000
100000 1120000 1030000
Total expected profit

Fixed Production Cost Variable Production Cost Profit per scenario


100000 1280000 -220000
100000 1280000 -10000
100000 1280000 200000
100000 1280000 410000
100000 1280000 620000
100000 1280000 870000
Total expected profit
Fixed Production Cost Variable Production Cost Profit per scenario
100000 1440000 -340000
100000 1440000 -130000
100000 1440000 80000
100000 1440000 290000
100000 1440000 500000
100000 1440000 710000
Total expected profit

Expected Profit
905000
749400
598200
457800
326200
201800
Expected profit per scenario 8000
28600
56100
205200
222200
226800
166100
905000

Expected profit per scenario 10000


15400
38500
162000
187000
198000
148500
749400

Expected profit per scenario 12000


2200
25300
118800
151800
169200
130900
598200

Expected profit per scenario 14000


-11000
12100
86400
116600
140400
113300
457800

Expected profit per scenario 16000


-24200
-1100
54000
90200
111600
95700
326200
Expected profit per scenario 18000
-37400
-14300
21600
63800
90000
78100
201800

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