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  • Solution: Course Material 20-22

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    Gandhi Jenny Rakeshkumar BD20029
    3 views8 pages
    The document presents equations for calculating expected profits (E Profits) under different scenarios. The equations include variables like b, l, i, p, and s. They show how expected profits are calculated as the sum of revenues from sales (b + lipi) minus costs (some combination of slpi, sb, and other variables) plus a fixed cost (sb). The equations get progressively more detailed, incorporating additional variables and constraints.

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    Session4_student-27

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    The document presents equations for calculating expected profits (E Profits) under different scenarios. The equations include variables like b, l, i, p, and s. They show how expected profits are calculated as the sum of revenues from sales (b + lipi) minus costs (some combination of slpi, sb, and other variables) plus a fixed cost (sb). The equations get progressively more detailed, incorporating additional variables and constraints.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views8 pages

    Solution: Course Material 20-22

    Uploaded by

    Gandhi Jenny Rakeshkumar BD20029
    The document presents equations for calculating expected profits (E Profits) under different scenarios. The equations include variables like b, l, i, p, and s. They show how expected profits are calculated as the sum of revenues from sales (b + lipi) minus costs (some combination of slpi, sb, and other variables) plus a fixed cost (sb). The equations get progressively more detailed, incorporating additional variables and constraints.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    Solution

    Problem # 4.16 Solution

    l
    ia
    er
    at
    𝑠 𝑠 𝑠

    M
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑠𝑙𝑝 𝑖 + 𝑠𝑏 1 − 𝑝 𝑖

    2 e
    -2 urs
    𝑖=0 𝑖=0 𝑖=0
    𝑠 𝑠 𝑠

    20 o
    D IC
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑠𝑙𝑝 𝑖 − 𝑠𝑏 𝑝 𝑖 + 𝑠𝑏

    M LR
    𝑖=0 𝑖=0 𝑖=0
    𝑠 𝑠

    ,B X
    T1 of
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − (𝑠𝑏 + 𝑠𝑙) 𝑝 𝑖 + 𝑠𝑏

    Q rt
    Pa 𝑖=0 𝑖=0
    𝑠 𝑠

    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏
    𝑖=0 𝑖=0

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    209
    Solution
    Problem # 4.16 Solution

    l
    ia
    𝑠 𝑠 𝑠

    er
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑠𝑙𝑝 𝑖 + 𝑠𝑏 1 − 𝑝 𝑖

    at
    M
    𝑖=0 𝑖=0 𝑖=0
    𝑠 𝑠 𝑠

    2 e
    -2 urs
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑠𝑙𝑝 𝑖 − 𝑠𝑏 𝑝 𝑖 + 𝑠𝑏

    20 o
    D IC
    𝑖=0 𝑖=0 𝑖=0
    𝑠 𝑠

    M LR
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − (𝑠𝑏 + 𝑠𝑙) 𝑝 𝑖 + 𝑠𝑏

    ,B X
    𝑖=0 𝑖=0

    T1 of
    𝑠 𝑠

    Q rt
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 Pa = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏
    𝑖=0 𝑖=0
    𝑠 𝑠

    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏
    𝑖=0 𝑖=0

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    210
    Solution
    Problem # 4.16 Solution

    𝑠 𝑠 𝑠

    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑠𝑙𝑝 𝑖 + 𝑠𝑏 1 − 𝑝 𝑖

    l
    ia
    er
    𝑖=0 𝑖=0 𝑖=0

    at
    𝑠 𝑠 𝑠

    M
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑠𝑙𝑝 𝑖 − 𝑠𝑏 𝑝 𝑖 + 𝑠𝑏

    2 e
    -2 urs
    𝑖=0 𝑖=0 𝑖=0
    𝑠 𝑠

    20 o
    D IC
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − (𝑠𝑏 + 𝑠𝑙) 𝑝 𝑖 + 𝑠𝑏

    M LR
    𝑖=0 𝑖=0
    𝑠 𝑠

    ,B X
    T1 of
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏 + 𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏

    Q rt
    Pa 𝑖=0 𝑖=0
    𝑠 𝑠

    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏
    𝑖=0 𝑖=0
    𝑠 𝑠

    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠𝑝 𝑖 + 𝑠𝑏
    𝑖=0 𝑖=0

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    211
    Solution
    Problem # 4.16 Solution

    l
    ia
    er
    at
    M
    2 e
    𝑠 𝑠

    -2 urs
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏

    20 o
    D IC
    𝑖=0 𝑖=0
    𝑠 𝑠

    M LR
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠𝑝 𝑖 + 𝑠𝑏

    ,B X
    T1 of
    𝑖=0 𝑖=0

    Q rt
    Pa

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    212
    Solution
    Problem # 4.16 Solution

    l
    ia
    er
    at
    𝑠 𝑠

    M
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏

    2 e
    -2 urs
    𝑖=0 𝑖=0
    𝑠 𝑠

    20 o
    D IC
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠𝑝 𝑖 + 𝑠𝑏

    M LR
    𝑖=0 𝑖=0

    ,B X
    𝑠 𝑠

    T1 of
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑠𝑝 𝑖 + 𝑠𝑏
    Q rt
    Pa 𝑖=0 𝑖=0

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    213
    Solution
    Problem # 4.16 Solution

    l
    ia
    𝑠 𝑠

    er
    at
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠 𝑝 𝑖 + 𝑠𝑏

    M
    𝑖=0 𝑖=0

    2 e
    𝑠 𝑠

    -2 urs
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑏 + 𝑙 𝑠𝑝 𝑖 + 𝑠𝑏

    20 o
    D IC
    𝑖=0 𝑖=0
    𝑠 𝑠

    M LR
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 𝑖𝑝 𝑖 − 𝑠𝑝 𝑖 + 𝑠𝑏

    ,B X
    T1 of
    𝑖=0 𝑖=0
    𝑠

    Q rt
    Pa
    𝐸 𝑃𝑟𝑜𝑓𝑖𝑡 𝑠 = 𝑏+𝑙 (𝑖 − 𝑠)𝑝 𝑖 + 𝑠𝑏
    𝑖=0

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    214
    Solution
    Problem # 4.16 Solution

    l
    ia
    er
    at
    M
    2 e
    -2 urs
    20 o
    D IC
    To find the optimum value of 𝑠

    M LR
    Let’s find how expected profit changes with unit change,

    ,B X
    T1 of
    Q rt
    Pa

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    215
    Solution
    Problem # 4.16 Solution

    l
    ia
    er
    at
    M
    2 e
    -2 urs
    20 o
    D IC
    To find the optimum value of 𝑠
    Let’s find how expected profit changes with unit change,

    M LR
    Let 𝑠 be substituted by 𝑠 + 1

    ,B X
    T1 of
    Q rt
    Pa

    Shounak Basak
    10/2/2020
    PODS Area, XLRI – Xavier School of Management
    216

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