Question 3 Question 4 If Heavenly Foods does not have an opportunity to lease the space, it is not free or costless to the lite product project. Instead it is an opportunity cost of $43,750 that must get charged to the new project and failing to do so would cause the new project’s calculated NPV to be too high. Question 5 Yes the erosion of profits should be charged to the High Energy Lite product due to cannibalization, a negative within firm externality where the new business eats into the profits of the existing business. Therefore the new
Basically the optimal choice will be dependent on the actual demand for the product. Although the company has no actual data on demand it can be expected that demand for a new product will exceed 25 units and will remain under 300 units. This assumption makes the reconditioning option the optimal choice. Another fact that will drive the choice towards outsourcing is the operating director does not like the idea of outsourcing and the added expense of purchasing new equipment is ill advisable due
Therefore, the company should not use the incremental method to value the Chiffon project since Mr. Peters argues that it has the wrong assumption. Mr. Peters’ argument toward incremental method leads the company to consider the second way to calculate Chiffon project, facilities-used basis.
Therefore congress should not pass raising the minimum wages for it doesn’t make a difference to our society III. Closing Statement: Aristotle, “The roots of education are bitter, but the fruit is sweet.” Emphasize, If you manage or try hard enough to graduate and get a degree, isn’t that much sweeter
2. What downside might there be with offshore outsourcing production of the PYREX product line to overseas suppliers? Answer: * No foreign plant can offer sufficient capacity to product all Pyrex line. Multiple vendors would cause extra management difficulty and supply chain complexity. * It is more difficult to maintain consistent product quality, which may lower the customer satisfaction and sabotage the brand image.
There are many ways to do so. Susan Schreter (2008) recommends three simple steps to improve profitability. The first one is to cut out unprofitable products and services. Company A’s current product is generating $2 per piece, which is not enough to cover the variable cost, so the firm is losing money making this current product. Therefore, company A needs to stop making this product.
The Buy American Act provides certain exceptions where imports from foreign competition can be purchased. Those three waivers include; the goods are not produced in the U.S. but are reasonable available quantities and quality. Secondly, the production of iron, steel and manufacturing goods will cost the contract more than 25 percent. And the last one would be applying the domestic preference would be inconsistent with the public interest. With these exceptions it explains how a product can be bought without being made in the U.S. It’s hard to understand how to follow the Buy American Act when it states it wants us to use only American made products but also states that there are exemptions to buying foreign products.
Is the use of a monthly average price a net advantage or disadvantage to J & L? Using NYMEX contracts will minimize the asset mismatch aspect of basic risk, along with a better liquidity. However, since diesel fuel is not a traded commodity, it cannot be directly hedged and J&L will suffer a certain amount of basis risk. J&L will also need to post a margin for their future contracts at NYMEX. Using product offered by Continental Bank would require a higher cost for J&L, and illiquid compared with NYMEX.
The central problem was trying to figure out the optimal avenue in terms of introducing and marketing the credit card to the Asia Pacific consumers, since the demographics varied drastically from market to market. Citibank needs to consider two important factors influencing the success of the credit card introduction: pricing the credit card too low would intrinsically conflict with their stated brand positioning and put them at risk of losing their established customer base. On the other hand, if Citibank prices the credit card too high it may result in low customer acceptance when introduced in markets with high per capita income or its price being perceived as “non-exclusive”. Citibank realized that its target consumer mindsets and usages of credit cards varied considerably in different markets of the Asia Pacific region, so pricing of the credit card was a particularly sensitive issue that could make or break the success of the credit card introduction. The introduction of a Citibank credit card has a lot of strengths and weaknesses associated with it.
Also, in an industry where the printing of photos is decreasing, it is imperative for consumers to be made aware of the quality and affordability of professional printing in order to maintain market share and profit. If consumers believe it is expensive to print photos, they will be inclined not to print and store pictures on a disk or print at home with a low quality printer. Strategic position After conducting a thorough analysis of Kodak’s financial statement, it is evident that the assets owned by Kodak are not being used in an effective nor efficient manner (Refer to Appendix A). This is evident after taking a close look at the company’s returns on investment which were recorded between 1998 through 2000. This was recorded at just fewer than 10 percent.