# Strayer Mat540 week 1 assignment and discussion

Click the link above to submit your homework.Complete the following problems from Chapter 1:Problems 2, 4, 12, 14, 20, 22Complete the following problems from Chapter 11:Problems 18, 20, 26, 28, 30Discussion wk 1

“Class Introductions” Please respond to the

following:

Please introduce yourself. List three things they know and three

things they want to know about the content in the course. I can collect this

information and use it throughout the course.

Homework Problems

MAT540

Week 1 Homework

Chapter 1

2. The Retread

Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000.The

variable cost of recapping a tire is $9.The company charges $25 to recap a

tire.

a. For an annual volume of 12,000 tires, determine the

total cost, total revenue, and profit.

b. Determine the annual break-even volume for the Retread

Tire Company operation.

4. Evergreen

Fertilizer Company produces fertilizer. The company’s fixed monthly cost is

$25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen

sells the fertilizer for $0.40 per pound. Determine the monthly break-even

volume for the company.

12. If

Evergreen Fertilizer Company in Problem 4 changes the price of its fertilizer

from $0.40 per pound to $0.60 per pound, what effect will the change have on

the break-even volume?

14. If

Evergreen Fertilizer Company increases its advertising expenditures by $14,000

per year, what effect will the increase have on the break-even volume computed

in Problem 13?

Reference Problem 13: If Evergreen

Fertilizer Company changes its production process to add a weed killer to the

fertilizer in order to increase sales, the variable cost per pound will

increase from $0.15 to $0.22. What effect will this change have on the

break-even volume computed in Problem 12?

20. Annie

McCoy, a student at Tech, plans to open a hot dog stand inside Tech’s football

stadium during home games. There are seven home games scheduled for the

upcoming season. She must pay the Tech athletic department a vendor’s fee of

$3,000 for the season. Her stand and other equipment will cost her $4,500 for

the season. She estimates that each hot dog she sells will cost her $0.35. She

has talked to friends at other universities who sell hot dogs at games. Based

on their information and the athletic department’s forecast that each game will

sell out, she anticipates that she will sell approximately 2,000 hot dogs

during each game.

a. What price should she

charge for a hot dog in order to break even?

b. What factors might occur

during the season that would alter the volume sold and thus the break-even

price Annie might charge?

22. The College of Business at Tech is planning to begin

an online MBA program. The initial start-up cost for computing equipment,

facilities, course development, and staff recruitment and development is

$350,000.The college plans to charge tuition of $18,000 per student per year. However,

the university administration will charge the college $12,000 per student for

the first 100 students enrolled each year for administrative costs and its

share of the tuition payments.

a. How many students does

the college need to enroll in the first year to break even?

b. If the college can enroll

75 students the first year, how much profit will it make?

c. The college believes it

can increase tuition to $24,000, but doing so would reduce enrollment to 35. Should the college consider doing this?

Chapter 11

18. The following

probabilities for grades in management science have been determined based on

past records:

Grade

Probability

A

0.10

B

0.30

C

0.40

D

0.10

F

0.10

1.00

The grades are assigned on a

4.0 scale, where an A is a 4.0, a B a 3.0, and so on. Determine the expected

grade and variance for the course.

20. An

investment firm is considering two alternative investments, A and B, under two

possible future sets of economic conditions, good and poor. There is a .60

probability of good economic conditions occurring and a .40 probability of poor

economic conditions occurring. The expected gains and losses under each

economic type of conditions are shown in the following table:

Economic

Conditions

Investment

Good

Poor

A

$900,000

-$800,000

B

120,000

70,000

Using the expected value of

each investment alternative, determine which should be selected.

26. The weight

of bags of fertilizer is normally distributed, with a mean of 50 pounds and a

standard deviation of 6 pounds. What is the probability that a bag of

fertilizer will weigh between 45 and 55 pounds?

28. The Polo

Development Firm is building a shopping center. It has informed renters that

their rental spaces will be ready for occupancy in 19 months. If the expected time until the shopping

center is completed is estimated to be 14 months, with a standard deviation of

4 months, what is the probability that the renters will not be able to occupy

in 19 months?

30. The

manager of the local National Video Store sells videocassette recorders at

discount prices. If the store does not have a video recorder in stock when a

customer wants to buy one, it will lose the sale because the customer will

purchase a recorder from one of the many local competitors. The problem is that

the cost of renting warehouse space to keep enough recorders in inventory to

meet all demand is excessively high. The manager has determined that if 90% of

customer demand for recorders can be met, then the combined cost of lost sales

and inventory will be minimized. The manager has estimated that monthly demand

for recorders is normally distributed, with a mean of 180 recorders and a

standard deviation of 60. Determine the number of recorders the manager should

order each month to meet 90% of customer demand.