Maurice Tutor

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About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 399 Weeks Ago, 1 Day Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 22 Feb 2018 My Price 9.00

TriangCom

15.     After graduating from college, your friends and you start an Internet auction service called TriangCom. Business has been fantastic, with 10 million customer visits—or “hits”—to the site in the last year. You have several capac- ity decisions to consider. One key decision involves the number of computer servers needed. You are considering putting in 10, 20, or 30 servers. Costs and capacity limits are as follows:

 

 

 

 

 

 

In addition, marketing has developed the following demand scenarios:

 

 

 

 

 

 

Finally, TriangCom generated $5 million last year based on 10 million “hits.” Put another way, each “hit” gener- ated, on average, $0.50 in revenue.

 

a.   (**) Calculate the break-even point for each capacity alternative.

 

b.  (**) At what demand level will you be indifferent to having either 10 or 20 servers?

 

 

 

c.   (***) Calculate the expected value for each capacity alternative. (Hint: Don’t forget about capacity con- straints that can limit the number of “hits” each capac- ity alternative can handle.) Which alternative will you prefer if you want to maximize the expected value?

 

 

 


Answers

Maurice Tutor
(5)
Status NEW Posted 22 Feb 2018 09:02 PM My Price 9.00

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