Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. maganga co. ltd has a factory capacity of 1,200 un

MAGANGA Co. Ltd has a factory capacity of 1,200 units per month. Units...

60.1K

Verified Solution

Question

Accounting

MAGANGA Co. Ltd has a factory capacity of 1,200 units per month. Units cost him Tsh 60?= to make and its normal selling price is Tsh 110/= each. However the demand per month is uncertain and is as follows:
\table[[Demand,Probability],[400,0.2],[500,0.3],[700,0.4],[900,0.1]]
The company has been approached by a customer who is ready to contract a fixed quantity per month at a price of Tsh 90 per unit. The customer is prepared to sign a contract to purchase 300,500,700 or 800 units per month. The company can vary production levels during the month up to the maximum capacity, but cannot carry forward any unsold units in its iriventory.
Required:
a) Calculate all possible profits that could result
b)iExpected value
ii)Maximin
iii)Maximax
iv)Minimax regret
c)What is the most that the company would be prepared to pay in order to obtain perfect knowledge as to the level of demand?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Dr Jewell describes this class as affected by high level alcoholism drug addiction and or...

Biology
1.2K views

Read the following passage and answer the question Marsupials are characterized by a distinctive pouch...

Physics
1.2K views

7 Oscillating Disk 3 Points A solid disk of mass mand radius ris on a...

Basic Math
1.2K views

A school dance committee is to consist of 2 freshmen, 3 sophomores, 4 juniors, and...

Basic Math
1.2K views

State the equation of the rational function if the vertical asymptote is x=5, the horizontal...

Basic Math
1.2K views

True and False. Determine if each statement is true (T) or false (F), if false...

Statistics
1.2K views

Phi Delta Kappa PDK is an international professional organization for educators that in collaboration with...

Accounting
1.2K views

The following data are accumulated by Waiols Company...

Accounting
1.2K views

ules Ques Ques Quest gnments Question 1 2 pts 5360 The statement of cash flows...

Accounting
1.2K views

QS 12-8 Computing cash from asset sales LO P3 The following information is from Ellerby...

Accounting
1.2K views

Problem 1 Part 1- Corporation On April 1,2023, a corporation with...

Accounting
1.2K views

You are in need of funds to expand your corporation, and three alternatives include issuing...