The Gatson manufacturing company has estimated the following components for a new product.
Fixed cost = $50,000
Material cost per unit = $2.15
Labor cost per unit = $2.00
Revenue per unit = $7.50
a. Build an influence diagram that illustrates how to calculate profit.
b. Using mathematical notation, construct a mathematical model for calculating profit.
c. Implement your model from part (b) in an Excel spreadsheet model using the principles of good spreadsheet design.
d. Using the spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product?

Question

The Gatson manufacturing company has estimated the following components for a new product.
Fixed cost = $50,000
Material cost per unit = $2.15
Labor cost per unit = $2.00
Revenue per unit = $7.50​
a. Build an influence diagram that illustrates how to calculate profit.
b. Using mathematical notation, construct a mathematical model for calculating profit.
c. Implement your model from part (b) in an Excel spreadsheet model using the principles of good spreadsheet design.
d. Using the spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product?
​

Quizplus · Accepted Answer

The Answer of The Gatson manufacturing company has estimated the following components for a new product.
Fixed cost = $50,000
Material cost per unit = $2.15
Labor cost per unit = $2.00
Revenue per unit = $7.50​
a. Build an influence diagram that illustrates how to calculate profit.
b. Using mathematical notation, construct a mathematical model for calculating profit.
c. Implement your model from part (b) in an Excel spreadsheet model using the principles of good spreadsheet design.
d. Using the spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product?
​

The Gatson Manufacturing Company Has Estimated the Following Components for a New