Variable Cost - ANSWERSUnit Variable Cost * Quantity Produced
Total Cost - ANSWERSFixed Cost + Variable Cost * Quantity Produced
(Also written as C=F+VQ) p. 380
Logic suggests that variable cost is... - ANSWERSthe unit variable cost times the quantity of item produced.
Demand has an inf...
Variable Cost - ANSWERSUnit Variable Cost * Quantity Produced
Total Cost - ANSWERSFixed Cost + Variable Cost * Quantity Produced
(Also written as C=F+VQ) p. 380
Logic suggests that variable cost is... - ANSWERSthe unit variable cost times the quantity of item
produced.
Demand has an influence on... - ANSWERSprofit
- by predicting how many units of a product will be sold
-Quantity produced is a decision option typically based on demand.
Quantity Produced - ANSWERSa decision option typically based on demand.
The Spreadsheet model for Profit - ANSWERSRevenue - variable cost - fixed cost
(Profit = Revenue - Variable Cost - Fixed Cost)
p. 383
One-way data tables - ANSWERSMultiple outputs may be evaluated using one way data tables.
For example, profit and revenue.
, Two-way data tables - ANSWERScan evaluate only one output variable
- To evaluate multiple output variables, you must construct multiple two-way tables.
p 408-410
Calculations/Formulas based on an Example Spreadsheet - ANSWERS•Identify the formula to calculate
net income based on the data values shown on the spreadsheet?
•Identify the formula which would be used to calculate the gross profit using only the data values in the
spreadsheet?
•Identify the formula which would be used to calculate the operating expenses using only the data
values in the spreadsheet?
•Identify the formula which would be used to calculate the net operating income using only the model
values in the spreadsheet?
•Identify the formula which would be used to calculate earnings before taxes using both the data and
model values in the spreadsheet?
•Identify the formula which would be used to calculate the net income value using information in both
the data and model sections in the spreadsheet?
•
Predictive models focus on... - ANSWERSunderstanding the future.
Predictive models incorporate the... - ANSWERSuncertainty element
Optimization - ANSWERSthe process of selecting values of decision variables that minimize or maximize
some quantity of interest.
- Optimization models have been used extensively in operations and supply chains, finance, marketing,
and other disciplines.
Objective Function - ANSWERSthe quantity that is to be minimized or maximized.
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