QUESTIONS need to be answer

1) If you rent 3 copiers what daily demand for copies will allow you to break even? Create an Excel Model and calculate the breakeven point. Interpret your findings

2) Discuss how a change in number of rented copiers affects profit. Create a one-way table and interpret the results for decision making.

3)Discuss how a change in number of copiers rented and daily demands of 500, 1000, 1500, and 2000 copies per day jointly affect profit. Create a two-way table and interpret the results for decision making

need to know by number same for

QUESTION-2

4) Model this question as a linear programming problem. Define decision variables, create objective function, create constraints and write your model in a text box in the Excel worksheet 5) Transfer this model to Excel and operationalize it 6) Solve the model and find the optimum solution and interpret the results

Instructions:1. You need to submit one Excel File
2. Each answer should be on a separate worksheet within the file. Please name worksheets
as Answer1, Answer2, Answer3, etc.
QUESTIONS
QUESTION-1
You are thinking of opening a small copy shop by renting copiers. It costs $5000 to rent a copier
for a year, and it costs $0.03 per copy to operate the copier. Other fixed costs of running the
store will amount to $400 per month. You plan to charge an average of $0.10 per copy, and the
store will be open 365 days per year.
1) If you rent 3 copiers what daily demand for copies will allow you to break even? Create an
Excel Model and calculate the breakeven point. Interpret your findings
2) Discuss how a change in number of rented copiers affects profit. Create a one-way table and
interpret the results for decision making.
3) Discuss how a change in number of copiers rented and daily demands of 500, 1000, 1500,
and 2000 copies per day jointly affect profit. Create a two-way table and interpret the results
for decision making
SOME BASIC BUSINESS FORMULA REMINDERS and INFORMATION
•
The breakeven point occurs where your profit is equal to zero: Total Revenue = Total
Cost
•
Profit = Total Revenue – Total Cost
•
Total Cost = Variable cost + Fixed Cost
•
Revenue = Quantity * Price
QUESTION-2
You are on a diet and suppose there are three foods available, corn, milk, and bread. Since it is
a diet, there are restrictions on the daily number of calories (at least 2000 and at most 2250)
and the amount of Vitamin A (at least 5000 and at most 50,000). The table below lists, for each
food, the cost per serving, the amount of Vitamin A per serving, and the number of calories per
serving.
Food
Cost per serving
Vitamin A
Calories
Corn
$0.18
107
72
2% Milk
$0.23
500
121
Wheat Bread
$0.05
0
65
Suppose that the maximum number of servings from each food for each day is 10.
What should be the servings of each food with a healthy diet at minimum cost?
4) Model this question as a linear programming problem. Define decision variables, create
objective function, create constraints and write your model in a text box in the Excel
worksheet
5) Transfer this model to Excel and operationalize it
6) Solve the model and find the optimum solution and interpret the results
QUESTION-3
An automotive company manufactures cars in three plants and then ships them to four regions
of the country. The plants can supply the following amounts:
Plant 1 = 450
Plant 2 = 600
Plant 3 = 200
Each regions demands are given as:
A = 450
B= 200
C= 300
D= 300
The unit costs of shipping a car from each plant to each region are listed in the table below. The
company wants to find the lowest-cost shipping plan for meeting the demands of the four
regions without exceeding the capacities of the plants.
7) Formulate a linear programming model to minimize the cost of transportation by meeting
each region’s demand. Define your decision variables, objective function, and constraints.
Put your model into a textbox in your Excel sheet
8) Transfer this model into Excel and operationalize it
9) Find the optimum solution with Solver and interpret it in a textbox
10) If for some reason, the company cannot carry any cars from Plant 1, how would you
modify your model? Write your answer in a textbox. You do not need to solve it. Just tell
me how you would modify your model.
REGION
PLANT
Plant 1
Plant 2
Plant 3
Good luck!
A
$131
$250
$178
B
$218
$116
$132
C
$266
$263
$122
D
$120
$278
$180