Answered: The Best Wheels Bicycle Company…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

The Best Wheels Bicycle Company produces bicycles in
different styles for boys and girls, in heights of 26 inches
or 20 inches, and with 10 speeds, 3 speeds, or 1 speed.
a. How many different kinds of bicycles does Best
Wheels make?
b. Construct a modular bill of material for Best Wheels
(one level). Assume that bike sales are equally split
between boys and girls, 26-inch bikes are preferred
two-to-one to 20-inch bikes, and 3-speed bikes account
for only 20% of sales. The remaining sales are divided
equally between 10-speed and 1-speed bikes.
c. If bicycle sales are expected to reach 10,000 over the
holiday shopping season, how many 26-inch bikes
should Best Wheels plan to produce? How many 10-
speed bikes?

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