Chapter 1

The Retread Tire Company recaps tires. The fixed annual costof the recapping operation is $ 60,000. The variable cost ifrecapping tires is $9. The company charges $25 to recap atire.a) For an annual volume of 120,000 tires, determine the totalcost, total revenue, and profit.b) Determine the annual break-even volume for the Retread TireCompany operation.

Problem 4

Evergreen Fertilizer Company produces fertilizer. thecompany’s fixed monthly cost is $25, 000 and its variable cost perpound of fertilizer is $0.15. Evergreen sells the fertilizer for$0.40 per pound. Determine the monthly break-even volume for thecompany.

Chapter 2

Problem 10
A large research hospital has accumulated statistical data on its patients for an extended period. Researchers have determined that patients who are smokers have an 18% chance of contracting a serious illness such as heart disease, cancer, of emphysema, whereas there is only a .06 probability that a nonsmoker will contract a serious illness. From hospital records, the researchers know that 23% of all hospital patients are smokers, while 77% are nonsmokers. For planning purposes, the hospital physician staff would like to know the probability that a gives patient is a smoker if the patient has a serious illness.

Problem 12
the senate consist of 100 senators, of whom 34 are republicans and 66 are democrats. A bil to increase appropriations is before the senate. thirty-five percent of the democrats and 70% of the republicans favor the bill. the bill needs a simple majority to pass. using a probability tree, determine the probability that the bill will pass.

Problem 14
A metropolitan school system consists of three districts – north, south, and central. The north district contains 25% of all students, the south district contains 40% of all students, and the central district contains 35%. A minimum competency test was given to all students. 10% of the north district students failed, 15% of the south district students failed, and 5% of the central district students failed.
A – develop a probability tree showing all marginal, conditional, and joint probabilities
B – develop a joint probability table.
C – What is the probability that a student selected at random failed the test