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# Bellevue BA 623 POP Quiz

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Bellevue College BA 623 POP Quiz Open Book Chapter 1 Review: 1. A production process requires a fixed cost of \$50,000. The variable cost per unit is \$25 and the revenue per unit is projected to be \$45. Write a mathematical expression for total cost. 2. A production process requires a fixed cost of \$50,000. The variable cost per unit is \$25 and the revenue per unit is projected to be \$45. Write a mathematical expression for total profit. 3. A production process requires a fixed cost of \$50,000. The variable cost per unit is \$25 and the revenue per unit is projected to be \$45. Find the break-even point. Chapter 2 Review: 4. A farmer decided to make his own chicken feed by combining alfalfa and corn in large quantities. Corn costs \$400 per batch and alfalfa costs \$200 per batch. The farmer’s chickens have a minimum daily requirement of vitamin K (500 milligrams) and iron (400 milligrams), but it doesn’t matter whether those elements come from corn, alfalfa, or some other grain. A unit of corn contains 150 milligrams of vitamin K and 75 milligrams of iron. A unit of alfalfa contains 250 milligrams of vitamin K and 50 milligrams of iron. Formulate the linear programming model for this situation. Chapter 3 Review: 5. The production manager for the Whoppy soft drink company is considering the production of two kinds of soft drinks: regular (R) and diet (D). The company operates one 8-hour shift per day. Therefore, the production time is 480 minutes per day. During the production process, one of the main ingredients, syrup, is limited to maximum production capacity of 675 gallons per day. Production of a regular case requires 2 minutes and 5 gallons of syrup, while production of a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are \$3.00 per case and profits for diet soft drink are \$2.00 per case. The formulation for this problem is given below. MAX Z = \$3R + \$2D Subject to: 2R + 4D ? 480 5R + 3D ? 675 The sensitivity report is given below. Adjustable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease \$B\$6 Regular = 90.00 0.00 3 0.33 2 \$C\$6 Diet = 75.00 0.00 2 4 0.2 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease \$E\$3 Production (minutes) 480.00 0.07 480 420 210 \$E\$4 Syrup (gallons) 675.00 0.57 675 525 315 5a) What is the optimal daily profit? 5b)How many cases of regular and how many cases of diet soft drink should Whoppy produce to maximize daily profit? 5c)What is the sensitivity range for the per-case profit of a diet soft drink? (P.89) 5d)What is the sensitivity range of the production time? 5e) if the company decides to increase the amount of syrup it uses during production of these soft drinks to 990 gal. will the current product mix change? If so, show what is the impact on profit?

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