Posted on by Judy

Solve the problem and I need a Excel for this question.

[ad_1]
On a popular route, an airline offers two classes of service: business class (B) and economy
class (E). The respective demands are given by:
B =540− .5 B and E =380− .25 EBecause of ticketing restrictions, business travelers cannot take advantage of economy’s low
fares. The airline operates two flights daily. Each flight has a capacity of 200 passengers. The
cost to the airline per flight is $20,000. The airline seeks to maximize total revenue.
Create a spreadsheet that can solve for the optimal number of each type of ticket the airline
should sell. Your spreadsheet should include revenue and marginal revenue for each type of
ticket, total revenue, marginal cost, total cost, and profit. Your only choice variables should
be the number of business class tickets and the number of economy class tickets. All other
values (aside from the seats per plane and total cost per trip) should be computed based on
your choice variable.
By hand, solve for the fares the airline charge should charge to maximize revenue. How
many passengers will buy tickets of each type? Check your answer with your spreadsheet
solver. (Hint: remember that the optimal occurs where marginal cost = marginal benefit,
MC=MB, and in this case the cost of selling one more economy class ticket is having to
give up a business class ticket, and vice versa). Also report the total revenue and profit.
Suppose the airline is considering promoting a single “value fare” to all passengers on the
plane. Find the optimal single fare using the spreadsheet solver. (Hint: you can think of
the ‘single fare’ as an additional constraint.) Also report the total revenue and profit.
Now suppose the airline can vary the number of daily flights, but due to their contract with
the airport they face the cost curve = 20000 + 5000 2 where F is the number of flights per
day. Assume the airline uses the optimal fares from part a.
c. By hand, solve for the profit maximizing number of flights. Check your answer with your
solver. Also report the total revenue and profit.

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"

Related posts:

  1. PLEASE TYPE IN A WORD DOCUMENT FORMAT AND SHOW STEP-BY-STEP EXCEL FORMULA!!! 13-7. Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are: Small Medium Large Minimum 14,000 6,200 2,600 Maximum 21,000 12,500 4,200 The production process consists of three primary activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is shown below: Small Medium Large Available Time Bending/forming 0.4 0.7 0.8 23,400 Welding 0.6 1.0 1.2 23,400 Painting 1.4 2.6 3.1 46,800 How many of each type of air compressor should the company produce to maximize profit? a.Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information. b.Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a.
  2. 13-7. 7.Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are: Small Medium Large Minimum 14,000 6,200 2,600 Maximum 21,000 12,500 4,200 The production process consists of three primary activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is shown below: Small Medium Large Available Time Bending/forming 0.4 0.7 0.8 23,400 Welding 0.6 1.0 1.2 23,400 Painting 1.4 2.6 3.1 46,800 How many of each type of air compressor should the company produce to maximize profit? a.Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information. b.Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a. —Need the Excel worksheet for this please— Or how to plug all of this in, step by step. And, Please TYPE ANSWER in a Word Document Format, as well. Thank you.
  3. Break up the following items into categories for making an Affinity Diagram. Quality food Ability to solve problems and answer questions during flight Efficient boarding procedures Appealing interior appearance Well-maintained seats Reservation calls answered promptly Timely and accurate communication of information prior to boarding Good selection of magazines and newspapers Efficient and attentive flight attendants Good beverage selection Clean lavatories Efficient ticket line and waiting procedures Convenient ground transportation Courteous reservations personnel Good-quality audio/visual system Sufficient quantity of food Interesting in-flight magazine Courteous and efficient gate personnel In-flight telephone access Good variety of audio/visual programming Flight attendants knowledgeable of airline programs and policies Correct explanation of fares and schedules Efficient seat-selection process Courteous and efficient sky cap Timely and accurate communication of flight information (in-flight) Convenient baggage check-in Timely baggage check-in Comfortable seating and leg room Assistance for passengers with special needs Courteous ticket counter personnel Convenient parking close to terminal Ability to solve baggage claim problems Ability of reservation agents to answer questions
  4. Schmaltx, Ltd., produces a variety of specialty beverages. One of its products is made in a separate facility for which monthly rent, administrative costs, and equipment leasing is $50,000. Eight workers handle production and shipping. Each receives salary and fringe benefits of $2,000 per month. Packaging and distribution costs are $1.5 per case, and ingredients cost $3 per case. The product is sold for $9 a case. Determine the following: 1) Write an expression for the cost function, revenue function and profit function in terms of the number of cases of beverage produced, Q. (Assume there is no demand restriction on sales). 2) Find the break-even point algebraically. 3.) Formulate a spreadsheet model that will give the profit. Use the Excel goal seek command (Data > What-If-Analysis > Goal Seek) to calculate the break-even point in part a. 4.a) Using the above spread sheet model find the profit or loss if Schmaltx produces and sells 10,000 cases. 4.b) Using the above spread sheet model find the profit or loss if Schmaltx produces and sells 30,000 cases. 5.) Write an expression for the profit function in terms of demand (in cases) for the beverage (S) and the number of cases of beverage produced (Q). 5.a) Formulate a spreadsheet model that will find the profit. 5.b) Find the cases of beverage to be produced when S= 20,000 cases using the above spreadsheet model. 5.c) Find the cases of beverage to be produced when S= 10,000 cases using the above spreadsheet model.