The Star Youth Soccer Club helps to support its 20 boys' and girls' teams financially, primarily through the payment of coaches. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $8,000, mainly for development, printing, and mailing of the tournament brochures. The tournament entry fee is $400 per team. For every team that enters, it costs the club about $75 to pay referees for the three-game minimum each team is guaranteed. If the club needs to clear $60,000 from the tournament, how many teams should it invite?

The Star Youth Soccer Club helps to support its 20 boys' and girls' teams financially, primarily through the payment of coaches. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $8,000, mainly for development, printing, and mailing of the tournament brochures. The tournament entry fee is $400 per team. For every team that enters, it costs the club about $75 to pay referees for the three-game minimum each team is guaranteed. If the club needs to clear $60,000 from the tournament, how many teams should it invite?

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Description: The Star Youth Soccer Club helps to support its 20 boys' and girls' teams financially, primarily through the payment of coaches. The club puts on a tournament each fall to help pay its expenses. The cost of putting on the tournament is $8,000, mainly

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.
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