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Please help me to draw the profitable chart. I am very confused to draw the chart.
Sales-10,20,30
Selling Price-$20pu
Cost-$10 p.uUnsold units scrap value $1 p.u
contract purchase-10,20,30 units each week.I tried plenty of time to solve the problem even some question i practised in BPP Exam kit but always i have some issue to draw the profitable chart.
I am looking forward to hearing from you. ThanksIt is not a chart – a chart is a type of graph. You need a table showing all the possible profits.
Also, have you watched the lecture on ‘decision making under uncertainty’ (together with the free lecture notes that go with it)? Because in that lecture I go through how to go about producing the table.
When you have watched it, then try the example again and ask again if you still have problems with it.
Dear Sir,
I looked at the lecture notes Risk and Uncertainity.
Example -1 asking calsulate all possible profits that could result?It was easy because capacity 1200 units per month given .
But in Revision Notes Uncertainty capacity Limit not given.
Please show me the working. Thanks
Sir please only provide part -a profit table answer. The rest of answer i am well aware .Thanks
Capacity is completely irrelevant in this question (every question of this type is different!). They are not making the units themselves.
Every unit sold makes a profit of 20 – 10 = $10.
Every unit not sold makes a loss of 1 – 10 = $9If they purchase 30 and sell 30, they make a profit of 30 x 10 = 300.
If they purchase 30 and only sell 20, then on the 20 sold they make 20 x 10 = 200. On the 10 not sold they lose 10 x 9 = 90.
So overall profit = 200 – 90 = 110If they purchases 30 and only sell 10, then on the 10 sold they make 10 x 10 = 100. On the 20 not sold they lose 20 x 9 = 180.
So overall loss = 180 – 100 = 80.If they purchase 20 and demand is 30, then they can only sell 20 and the profit is 20 x 10 = 200.
You should now be able to complete the rest of the table yourself.
Hi Good Morning,
Its great having a registration , honestly its worth it because I am using at the moment BPP notes and Exam kit but sometimes my knowledge is not enough to understand the answers. Any time I ask question over the Tuition forum then get the answer quick.
I attempted F-9 in September sitting and waiting for result. Hope it will be good.
Thank you so much for answering.
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