Based on volume output the best option to cost-effectively manufacture the Samba Sneakers would be to buy New Equipment with fixed cost of $200,000, variable cost of $500 for every 1,000 sneaker. -Buying new equipment has the lowest cost option for a volume over 300 sneakers manufactured. The breakeven points for each option are as follows: BREAKEVEN POINTS Units Dollars Reconditioned vs. New Equipment 300 350000 Reconditioned vs. Outsource 25 75000 New Equipment vs. Outsource 80 240000 However, buying New Equipment has the lowest cost according to the graph for volumes over 300 sneakers. (See Graph) A1. A1a.
Chapter 3 Applied Problems 2. Appalachian Coal Mining should minimize net cost by choosing that level of pollution (P) where the marginal benefit of pollution reduction equals the marginal cost of pollution reduction: 1,000 – 10P = 40P P* = 20 units of pollution. 4. a. 2 b. $500 (= $25 ´ 20 radios not stolen due to hiring 1 guard) c. 4 Chapter 4 Applied Problem 1. a.
| Math 103 Final Project – Parts 1, 2, and 3 | | | Math 103 Instructor: Toni Robertson December 11, 2010 Math 103 Instructor: Toni Robertson December 11, 2010 Part 1: 1a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $15,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $12,000. The shortest loan period for the $15,000 car that would be under our $500 limit is the 36 month loan at a rate of $348.93 per month.
1. How would you define “Frozen Preferences” and what is the impact of this concept on strategy formulation, alternative analysis and recommendation? • Managers don’t like to make major strategic changes once decisions have been made (except in the case of overwhelming evidence) as they will look unprepared and ineffective and their creditability is damaged • Frozen preferences o Management has made a decision and over time analysis shows that their decision may not be the best choice o However they feel compelled to maintain their current strategy even if it is not the best course of action. • As management preferences becomes a larger part of the organization (personnel changes, budgets etc), it becomes more and more difficult to change direction. o A tendency to avoid reversing changes even if it was not the best choice o In reality, past expenditures are sunk costs and the organization should use a clean slate to look at new choices, but to the manager, this will come at great personal loss.
The R-squared value shows us the correlation between the two variables in each graph that we were comparing. A consistent, precise R-squared value would be ideally 1. In all three cases, only one of our methods gave us this result: Titration. So given our results titration was the most precise method. But, our Ideal Gas Law method was more precise than crystallization from the previous week due to our newly found R-squared value of 0.8909.
JGT Task 2- Kyle Dickerson The Transportation model finds the least cost effective ways to ship supplies to different destinations. “Transportation modeling [is] an iterative procedure for solving problems that involve minimizing the cost of shipping products from a series of sources to a series of destinations" (Heizer & Render, 2010, p. 718). In this case there are three warehouses to which Shuzworld will be moving goods to. The factories are named Shanghai Shuzworld H and Shuzworld F. Further into the case we find out that the Shanghai plant would like to increase the currently producing 1300 shoes to 2800 shoes. The optimal cost of 13,400 is achieved by shifting which warehouse the factories ship to through the distribution method.
With this said, my final recommendation is that Custom Snowboards first try to improve their costing methods and reduce expenses before moving forward with the expansion. By choosing the no long term debt as the optimal capital structure, you can clearly see that it gives the greatest earnings per common stock share at 0.064 compared to the other options of -0.037, 0.054, and 0.015. There is also zero interest on the no long term debt compared to the other options. All options have a total debt of $1,000,000, so no difference there, as well as EBIT, which is $60,018 for all options. And also, net income is the best for the no long term debt option at $45,089, while the other options fall at -7,382, 29,901, and 4,589.
If this monopolistically competitive firm maximizes profit, it will 26. Suppose the minimum possible price of constructing homes is $50 per square foot. As a result of a sharp drop in the demand for home construction, the equilibrium price of home construction falls to $40 per square foot. Assuming the home construction industry is perfectly competitive and there are no specialized inputs, firms
However, what I want to say is that if the company behave unethically as a whole, it may lose its consumer trust and undermine the firm’s reputation, then how can an employee realize his personal value? So we must try to avoid
Shelly would also risk loosing her customer base and not being able to rebound from a downfall which could occur in production. In the short run, the price would be consistent with what the consumers are willing to pay, but in the long run, Shelly is going to have to raise her price in order to pay the national restaurant chain, pay for cost of goods, and still stand a chance of making a