Quantitative Techniques: Theory and Problems

PRACTICAL QUESTIONS

1. A factory produces three varieties of fountain pens. The fixed and variable costs are given below:

    

   	Fixed Cost	Variable Cost(per unit)
   Type 1	Rs. 2,00,000	Rs. 10
   Type 2	Rs. 3,20,000	Rs. 8
   Type 3	Rs. 6,00,000	Rs. 6

   The likely demand under these situations is given below:

    

   		Units
   Demand	Poor	25,000
   Demand	Moderate	1,00,000
   Demand	High	1,50,000

   If the price of each type is Rs. 20 prepare the payoff table after showing the necessary calculations.

2. A newspaper boy has the following probability of selling a magazine:

    

   	No. of copies sold	Probability
   	10	0.10
   	11	0.15
   	12	0.20
   	13	0.25
   	14	0.30

   Cost of a copy is 30 paise and selling Price is 50 paise. He cannot return ...