Since the 4.5 million is just an expected amount of fuel, J&L cannot achieve a perfect hedge in the future. They should estimate the accurate demand for fuel next year. 2. What are the pros and cons of using NYMEX contracts versus using the risk-management products offered by Continental Bank? Is the use of a monthly average price a net advantage or disadvantage to J & L?
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.
Goal Definition: Advise Management on the various options regarding the outsourcing contract and the decision to proceed with JAFAR contract. Quantitative Analysis: • Exhibit 1 shows the effects of the external procurement of CTR1 units. Accepting the outsourcing contract was overall unfavorable to Seagull as it is costing the company $600K per year. • Exhibit 2 shows the net income effect if the outsourcing contract is cancelled or modified. Reducing the order to 2 000 units is the most financially favorable option for the company as a whole.
This means that the hospital wouldn’t have to worry about a depreciable value for at least 20 years and then the hospital could claim the depreciation value. The biggest disadvantage of this would be the cost. By choosing this option the hospital would be risking using up any extra reserve which might not be the best as the CFO stated that the hospital needs to
One suggestion is that the company reposition its water as a premium product, justifying a higher price. If successful, the company believes that it could charge 20% more for its water than it does now. 1. What is the maximum sales loss (in % and units) that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution to its profitability? The maximum sales loss would be 25% before they can tolerate before a 20% price increase, which amount to 1,500 bottles per day instead of 2,000.
We will offer price cuts for Able and increase prices on modified products. Antz is not priced, as this product is not ready for production. | Able | Acre | Adam | Aft | Agape | Antz | Price | $24.00 | $18.00 | $37.00 | $32.50 | $32.00 | N/A | Sales Forecast | 1800 | 2000 | 650 | 540 | 500 | N/A | We will leave A/P at net 30 days and A/R at net 45 days. Promotion & Sales We reduced budgets for Able, Acre, and Adam, as these products have established visibility. We left the budgets for Aft and Agape at current levels, as these sites need increased visibility.
Even so, millions will remain uninsured,” (Pros and cons of Obama care June 29, 2012). Taxes will increase, so yes our health insurance coast goes down but is made up for in higher taxes. Another con is that by forcing states into federally-mandated health insurance it goes against state rights and violates federalism. Finally, not only is there fines if you don’t have health insurance but there is also the fact that “some speculate that you can be thrown in jail for failure to pay your health insurance taxes,” (Pros and cons of Obama care June 29, 2012). The evaluations of the pros and cons should be evaluated by their effectiveness.
Health and Safety Equality Data Protection 2b) List three key points of legislation that affect employees in a business environment. Pay and Pensions Health and Safety Employments Rights and Responsibilities 3. Identify a range of places where a person can find information on employment rights and responsibilities. You should identify at least two internal and two external sources of information. Internal: Line Manager, Employee Book External: Citizen Advice Bureau, Library 4.
- Health & Safety - Data Protection - Pay & Pensions 2b) List three key points of legislation that affect employees in a business environment. - Employment rights and responsibilities - Pay & Pensions - Health & Safety 3. Identify a range of places where a
The optional aggregate plan is shown in Table below. Total Cost = $19,032,410.71 Revenue = $55,100,000 Profit = $36,067,589 • If there is no promotion, the optional aggregate plan is shown in table below. Total Cost = $16,062,415.02 Revenue = $53,500,000 Profit = $37,437,584.98 • Observe that a price promotion in September results in a higher profit than a promotion in November, whereas no promotion results in a highest profit. As a result, if offering the discount of $10, Mintendo should not offer any price promotion 3. Suppose Sandra’s fears about increasing outsourcing costs come to fruition and the cost