Model A Model B Model C Model D Model E
Time to manufacture 15 minutes 18 minutes 13 minutes 20 minutes 17 minutes
% Of monitors sold per total products 75% 73% 84% 95% 81%
Cost per monitor $175 $188 $145 $198 $170
A company manufactures computer monitors. Among the various models are top products, which bring high revenue.
Assuming the manufacturing lines are running for 9 hours a day for 7 days a week, which model brings in the highest revenue?
The answer to the question is available in the PDF file https://assignmentexpert.com/https://assignmentexpert.com/homework-answers/mathematics-answer-52562.pdf
Dear Karolina. You are right. If the meaning is 'cost for the buyer
and revenue for the company', that is, 'cost= price', then the correct
answer is 'model D brings the highest revenue'. If it is 'cost for the
company and expenditure for the company', then the correct answer will
be 'model B brings the highest revenue'.
Karolina
13.07.16, 15:36
I think there's an ambiguity in the data. From the solution I gather
that "cost" means "revenue for the company" which is silly, because I
understand "cost" as cost for the company and not cost for the
buyer... With my reasoning the model which has the lowest cost would
actually bring the most revenue (not sure how to factor the sales %
though, without the price per model). Maybe it would be wise to
actually change "cost" for "price" in the question? That would make it
more clear...
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Dear Karolina. You are right. If the meaning is 'cost for the buyer and revenue for the company', that is, 'cost= price', then the correct answer is 'model D brings the highest revenue'. If it is 'cost for the company and expenditure for the company', then the correct answer will be 'model B brings the highest revenue'.
I think there's an ambiguity in the data. From the solution I gather that "cost" means "revenue for the company" which is silly, because I understand "cost" as cost for the company and not cost for the buyer... With my reasoning the model which has the lowest cost would actually bring the most revenue (not sure how to factor the sales % though, without the price per model). Maybe it would be wise to actually change "cost" for "price" in the question? That would make it more clear...
Leave a comment