VARIABLE COST
(PER UNIT)
Expected
Number of
Per Copy
b.)
Demand Scenario: 40,000 Probability: 30%
Demand Scenario: 60,000 Probability: 40%
Demand Scenario: 110,000 Probability: 30%
FIXED COST
VARIABLE COST
Demand Scenario: 25,000 Probability: 30%
Demand Scenario: 60,000 Probability: 40%
Demand Scenario: 100,000 Probability: 30%
a.)
Revenue Per Unit: $2,500
c.)
VARIABLE COST
a.) Probability
Salary
Salary
a.)
c.)
VARIABLE COST
VARIABLE COST
a.)
b.)
Demand Scenario Fixed Cost Variable Cost Revenue Profit
c.)
Demand Scenario Fixed Cost Variable Cost Revenue Profit Probability Expected Value
d.)
Demand Level Probability Profit
FIXED COST
(PER YEAR)
Break-Even
Volume Point
Long-Run Averages:
Arrival Rate: 20 customers per hour
Service Rate: 30 customers per hour
a.)
Long-Run Averages:
Arrival Rate: 10 calls per hour
Service Rate: 15 calls per hour
b.)
Long-Run Averages:
Arrival Rate: 13 calls per hour
Service Rate: 15 calls per hour