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# Suppose Mike likes your analysis in the lecture notes and he wants to open a second poutine delivery service with the hope that it will become an international franchise one day. For his second

Suppose Mike likes your analysis in the lecture notes and he wants to open a second poutine delivery service with the hope that it will become an international franchise one day. For his second shop, it will be in a more densely populated metropolitan city He plans to work overtime managing his two locations, and he were to do this much work for his dad in Montreal, he would have earned another \$5,000 in overtime pay (foregone income), with discount rate r = 0.07. The registration fee for this second location is \$5,000, and he plans to run this second location for at least five years. His fixed cost is \$15,000 for each of these five years unless Mike tries out a different business strategy. Keep all calculations to four decimal places, if applicable. F You estimated the daily cost data below: Q 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 TC MC ATC 42.5958 1.50005 42.5958 44.0963 1.501 22.0481 45.5981 1.50285 15.1994 47.1023 1.5056 11.7756 48.6096 1.50925 9.7219 50.1211 1.5138 8.3535 51.6375 1.51925 7.3768 53.1599 1.5256 6.6450 54.6890 1.53285 6.0766 56.2259 1.541 5.6226 57.7713 1.55005 5.2519 59.3263 1.56 4.9439 60.8916 1.57085 4.6840 62.4683 1.5826 4.4620 64,0571 1.59525 4.2705 65.6591 1.6088 4.1037 672750 1662225 3.9574 Delivery 0.00005 0.001 0.00285 0.0056 0.00925 0.0138 0.01925 0.0256 0.03285 0.041 0.05005 0.06 0.07085 0.0826 0.09525 0.1088 0212325
27 84.4025 1.81725 3.1260 28 86.2319 1.8416 3.0797 29 88.0860 1.86685 3.0374 30 89 9659 1.893 2.9989 31 91.8723 1.92005 2.9636 32 93.8063 1.948 2.9314 33 95.7686 1.97685 2.9021 34 97.7603 2.0066 2.8753 35 99.7821 2.03725 2.8509 36 101.8351 2.0688 2.8288 37 103.9200 2.10125 2.8086 38 106.0379 2.1346 2.7905 39 108.1895 2.16885 2.7741 40 110.3759 2.204 2.7594 41 112.5978 2.24005 2.7463 42 114 8563 2.277 2.7347 43 117.1521 2.31485 2.7245 44 119.4863 2.3536 2.7156 45 121.8596 2.39325 2.7080 4G 1242731 2.4338 2.7016 47 125,7275 2.47525 2.6963 48 129.2239 2.5176 2.6922 49 131.7630 2.56085 2.6890 50 134 3459 2.GOS 2.6869 51 136.9733 2.65005 2.6858 139.6463 7.696 2.6855 53 1423656274285 2.6861 SA 145.1323 2.7906 2.6876 147.9471 2.83975 2.6899 0.31725 0.3416 0.36685 0.393 0.42005 0.448 0.47685 0.5066 0.53725 0.5688 0.60125 0.6346 0.66885 0.704 0.74005 0.777 0.81485 0.8536 0.89325 0.9338 0.97525 1.0176 1.06085 1.105 1,15005 1.196 124285 1.2906 131925 The total content that captures the above numbers is TC = 15,000/365 +1.50 -0.00020? +0.000150 DELL FS FB FO P F10 F12 2 F11 ** De Wert T A * %2 3 &7 - 4 5 6 8 9 0 ERT Y U L o P
48 49 50 51 52 53 54 55 129.2239 2.5176 131.7630 2.56085 134.3459 2.605 136.9733 2.65005 139.6463 2.696 142.3656 2.74285 145.1323 2.7906 147.9471 2.83925 2.6922 1.0176 2.6890 1.06085 2.6869 1.105 2.6858 1.15005 2.6855 1.196 2.6861 1.24285 2.6876 1.2906 2.6899 1.33925 The total cost equation that captures the above numbers is: TC = 15,000/365 + 1.5Q -0.00020? + 0.000150 What is the quantity that is the most cost efficient for Mike to produce? a. Between 51 and 52 b. Between 39 and 40. C Between 35 and 36 d. Between 49 and 50 Clear my choice o DELL F3 F4 F5 F6 FB F9 F10 F11 . F12 3 Priser Q # %

Apr 08 2021 View more View Less