1. (15 pts) party world is a store selling party stuffs. one of its popular products for halloween is elvis wig. the elvis wig is produced in asia, so party world has to make a single order well in advance of the upcoming season. tony, the manager of the store estimates the following as his demand forecast d pr(d) f(d) 5,000 0.05 0.05 10,000 0.11 0.16 15,000 0.15 0.31 20,000 0.22 0.53 25,000 0.21 0.74 30,000 0.13 0.87 35,000 0.10 0.97 40,000 0.03 1 the elvis wig retails for $20, party world pays $9 per unit to its manufacturer in asia. leftover inventory can be sold to discounters for $4. a) what order quantity maximizes party world’s expected profit? b) if party world orders the quantity in part a), what is party world’s expected fill rate? c) if party world orders the quantity in part a), then how many customers does party world expect to turn away because of shortage? d) if party world orders the quantity in part a), then how many wigs can they expect to have to liquidate? e) if party world orders the quantity in part a), then what is its expected profit? f) if party world wants to have a 90% cycle service level (csl), then how many elvis wigs should be ordered?

You are at a holiday dinner with your family. your relative makes the argument that the u.s. economy is resurgent and has recovered from the great recession of 2007 – 2009. economic growth, as measured by gdp, has been increasing from one quarter to the next. you beg to differ. how would you structure your argument with your relative? hint: you should think about two things, the accuracy of gdp measures, and whether gdp should be considered a comprehensive measure of a countries well-being.

Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .

Gino's restaurant is a popular restaurant in boston, massachusetts. the owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. the intern, in consultation with the owner, identified the following major activities: activity cost pool activity measure serving a party of diners number of parties served serving a diner number of diners served serving drinks number of drinks ordered some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. data concerning these activities are shown below. serving a party serving a dinner serving drinks total total cost $47,600 $153,000 $59,800 $260,400 total activity 7,000 parties 30,000 diners 46,000 drinks prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. she knew that the total cost for the month was $260,400 and that 30,000 diners had been served. therefore, the average cost per diner was $8.68.required: 1. compute the activity rates for each of the three activities 2. according to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. a party of four diners who ordered three drinks in total b. a party of two diners who do not order any drinks c. a lone diner who orders two drinks 3. convert the total costs you computed in part (1) above to costs per diner. in other words, what is the average cost per diner for serving each of the following parties: a. a party of four diners who order three drinks in total b. a party of two diner who do not order any drinks c. a lone diner who orders two drinks 4. why do the costs per diner for the three different parties differ from each other and from the overall average coast of $9.80 per diner?