Professional Documents
Culture Documents
Chapter9 Examples
Chapter9 Examples
Number of salespersons 3
Avg num tickets sold per person 15
Price per ticket $20.00
Cost per ticket $15.00
Total profit $225.00
$225.00
$16.00
$18.00
$20.00
$22.00
$24.00
$30.00
Company Sales
Outputs Year 1 2 3 4
Unit Sales 10000 11000 …
Unit Price $9.00 $9.27
Unit Cost $6.00 $6.30
Revenues $90,000.00 $101,970.00
Costs $60,000.00 $69,300.00
Before Tax Profits $30,000.00 $32,670.00
Tax $12,000.00 $13,068.00
After Tax Profits $18,000.00 $19,602.00
NPV
5
Packaging Volumes
Heights Widths Depths
Number Ordered
Expected Number Sold
Number Returned
Outputs Costs
Sales Revenue
Salvage Revenue
Profit
Averages
Random
Probability
0.31
Multiple Rolls
First Probability Second Probability
4 1/12 2 1/36
5 1/9 3 1/18
6 5/36 4 1/12
8 5/36 5 1/19
9 1/9 6 5/36
10 1/12 7 1/6
8 5/36
9 1/9
10 1/12
11 1/18
12 1/36
Second
First Roll Win Roll Second Roll Third Roll
Output Game Roll Value or Lose Value Win or Lose Value
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Competitor Bid
1
2
3
Output Profit
Max Profit
Bid for Max Profit
Bid