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.
So we can conclude that the average (mean) annual income was less than $50,000. Given a=0.05, the critical value is |Z(0.025)|=1.96 (from standard normal table) So 95% CI is xbar +/- Z*s/√n --> 43480 +/- 1.96*14550.7/√50 --> (39446.75, 47513.25) We have 95% confident that the population mean will be within this interval. Based on the statistical analysis, we can support the claim that the average (mean) annual income was less than $50,000. b. the true population proportion of customers who live in an urban area exceeds 40% The test hypothesis is Ho: p=0.4 Ha: p>0.4 The test statistic is Z=(phat-p)/√(p*(1-p)/n) =(21/50-0.4)/√(0.4*0.6/50) =0.29 The p-value= P(Z>0.29)= 0.3859 (from standard normal table) Since the p-value is larger than 0.05, we do not reject Ho. So we cannot conclude that the true population proportion of customers who live in an urban area exceeds 40% So 95% CI is phat +/- Z*√(p*(1-p)/n) --> 21/50 +/- 1.96*√(0.4*0.6/50) --> (0.2842072, 0.5557928) We have 95% confident that the population proportion will be within this interval.
Answers to Week Two Homework Assignment ( Assignment 1) Chapter 7 Exercise 13 You should choose a sample size of 1000 people. Although the law of averages tells you that the average of 1000 people is very likely to be close to 60 inches -- and thus under 65 inches tall -- here you are winning a prize for each person over 65 inches tall, not when the average of all the people is over 65 inches tall. Having a larger sample will give you more chances at getting the prize. The law of averages pertains to the variability of a sample average -- not variability in individual data values themselves. Here, we are concerned with individual data values.
The number of terms is n=10, the first term is a1=525, the common ratio is r = 1.05. Although the initial balance is $500, a1 = $525 because the first term of the sequence is at the end of the first year, so it must include the interest on the $500. The ending balance can now be found An = a1(rn-1) A10 = 525(1.05)9 A10 = 525(1.55132822) A10 = 814.447316 814.447316 can be rounded to 814.45, thus showing that the ending balance after 10 years is $814.45. The formula to solve this problem was found on page 229 in in Mathematics in Our World (Bluman,
Similarly, the transaction cost for stores such as H&M is more than that of the jewelry shops but less than the department stores. Also, it is much harder for a business enterprise to internalize if it has high transaction cost. Thus, jewelry shops can internalize at an easier way as they have comparatively lower transaction costs. Since, jewelry shops can internalize in an easier way, theoretically, they should make more money. And it is only fair that the shop that makes more money has to pay more rent.
e. The company should buy the steel at this price. The shadow price for stainless steel is $0.8 per ounce and the maximum allowable increase is 555.6 ounces. Because 500 is in this range, the $0.8 is valid. Thus, the value of 500 additional ounces is = 500 ($0.8) = $400. However, the local distributor has offered to sell Parket Sisters an additional 500 ounces of stainless steel for $0.60 per ounce more than it ordinarily pays, so the value of 500 additional ounces is =500(0.8)- 500 ($0.6) = $100>0. f. An increase of 500 in the RHS value of the third constraint is within the allowable range of increase for the shadow price of this constraint.
Outsourcing brings proven benefits in the form of economic leveraging, increase in the quality of products and it provides a number of opportunities to less developed countries. For example in recent times, Americans are overwhelmingly supporting the major retail stores like Wal-Mart, Target and K-Mart. The reason behind this consumer loyalty is that it has become much easier to shop at these locations rather than the local mom and pop stores located on the corner of most neighborhoods. The benefit is that you can purchase everything on your shopping list from one location, saving you time, money and gasoline. In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost.
500 @ $4.58 = $2,290 200 @ 4.60 = 920 700 $3,210 Ending inventory at FIFO cost. (2) 100 @ $4.10 = $ 410 600 @ 4.20 = 2,520 700 $2,930 Ending inventory at LIFO cost. (3) $9,240 cost of goods available for sale ÷ 2,100 units available for sale = $4.40 weighted-average unit cost. 700 units X $4.40 = $3,080 Ending inventory at weighted-average cost. (b) (1) LIFO will yield the lowest gross profit because this method will yield the highest cost of goods sold figure in the situation presented.
The introduction of a Citibank credit card has a lot of strengths and weaknesses associated with it. Citibank positioned itself as wanting to be the “most profitable and preeminent provider” of financial services to the well-off and affluent markets in the Asia Pacific. The
In the US for example, due to the exchange rate, the Hyundai cars are far cheaper than US of European brands. * Demanding nature of Korean; an interesting natural advantage for Hyundai is the demanding nature of the Korean, which pushes the company to keep on pushing for improvement and innovation. By fulfilling the needs of their home consumers, who are believed to be among the most demanding consumers worldwide, Hyundai automatically meets and even exceeds the needs of the global consumer. * Cost-effective labor; Korea has an abundance of highly skilled workers