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Ops

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Siddhi Salvi
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4 views3 pages

Ops

Uploaded by

Siddhi Salvi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Cf = fixed cost

Cv = variable cost (production cost)


P = price
V = (no. of product)
At break even point:
Profit = 0
TR - TC = 0
TR = TC

TC = Cf + V(Cv)

*
V(P) = Cf + V(Cf) -> V(P) - V(Cv) = Cf -> V(P - Cv) = Cf -> V = Cf / P - Cv

Question 1

Fixed cost : 20,000

Variable cost : 1.50

Price : 3.00

a) V = 12,000

TC = 20,000 + 12,000(1.5) = 38,000

TR = 3.00 * 12,000 = 36,000

Profit : TR - TC = - 2,000

Break even point :

20,000 / (3 - 1.5) = 13,333.33


Question 2

Fixed cost : 900,000

Variable cost : 180 per member

a) End of one year : break even

TC = 0

TR = 0

V = 300

What is the minimal monthly fee?

900,000 / (x - 180) = 300

900,000 = 300 * (x - 180)

900,000 = 300x - 54,000

900,000+54,000 = 300x

x = 3,180

3180 per year

3180/12 = 265

265 per month

b) 900,000/ (250*12 - 180) = 319.19


Chapter 2

Step 1 (define variables):

X1 = no. of bowls

X2 = no. of mugs

Step 2 (define objective function):

Profit for bowls is 40 , profit for mugs is 50.

(Profit) -> 40X + 50X


1 2
Step 3 (define constraints):

Labor for bowls is 1 , labor for mugs is 2.

(Labor) -> 1X + 2X ≤ 40
1 2
Clay for bowls is 4 , clay for mugs is 3.

(Clay) -> 4X + 3X ≤ 120


1 2
(X , X ≥ 0)
1 2

Solve:

X and y coordinates = (0,20) (2,19) (4,18) (6,17) (8,16) (10,15) (12,14) (14,13) (16,12)

(18,)

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