Topic Unit 1 Case Study and Essay

Topic: Unit 1 Case Study and Essay

Answer this question by it self. Then do the case study and Essay. Please title as such Case Study and then Essay so I can know which is which. Thanks

Of what use is probability determination in (1) card playing, (2) other gaming or gambling, or (3) lottery draws? Is deciding with the odds worth the risk to a certain point? Is deciding against the odds worth the risk?

Unit I Case Study
Read the following case study:

Motivated by his ambitions and previous work in coffee shops, Angelo is moving to Barrow, Alaska, to open a shop he has
named Alaska Coffee. Angelo intends to sell coffee, espresso, and a couple of food items. He has signed a lease for a shop
on one of the main streets and is moving in. His parents fronted him the cost or actual items of furniture and utensils, and he
acquired some donated items, so he will not have to count these items in his cash accounting. Angelo is nearly ready to
start selling coffee!

Angelo notes that he has the following fixed costs that he does have to count:
$1200/month for employees, totaled up, and
$1500/month lease, insurance, state, and borough fees.
Angelo figured he would allocate these fixed costs to his products in the same proportion that they provided revenue as
shown in this table:
As you can see, local demand and the cost of acquiring supplies and ingredients from a store in the Arctic drives Angelo’s
accounting. The coffee is the thing for him! However, the other items are selling as well.
Angelo asks a visiting family member to prepare a report for him that answers the questions below.
With the way Angelo has the fixed cost proportioned out by 75%, 15%, 5%, and 5% for each of the four items for sale,
what is the break-even point of sales of each item for him in a month?
What would the total sales figure for the shop be at the break-even point?
What, if anything, should Angelo do to improve his business?

Prepare the report as instructed in a response. Be sure to research at least two sources to support
your ideas and integrate the sources in APA-formatted citations and matching reference lists. Additionally, use Times New
Roman 12pt. double-spaced font.

Unit II Essay
Pioneer Aircraft Co. sells private, single-engine planes. Most sales are for customers engaged in private and leisure flying. In
a 50-week period, sales in the past five years have averaged to the following:
MSL 5080, Methods of Analysis for Business Operations 2
0 40
1 8
2 1
3 1
In essay, determine the items below:

1. Determine the probability of each number of planes sold—of 0, 1, 2, 3—in a 50-week period. (Pioneer sales office is
closed the other two weeks of the year.)

2. Decide what approach is best used to determine probability. Distinguish between the approaches to make it clear that
the approach used was the best fit for these airplane sales.

3. Determine if the approach would change if we also needed to track sales of some planes with GPS installed.
Be sure to provide research to support your ideas. Use APA style, and cite and reference your sources to avoid plagiarism.

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