3. Solve the given question and give the correct answer. You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressurehydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basisof a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice?AlternativeFirst CostMaintenance cost, per YearSalvage ValueLifeWhich alternative should be selected?(A) Alternative XB) Alternative YX$-40,000$-14000$1,5005 yearsY$-65,000$-5000$7,5005 years

In this method of comparison, the cash flows of every alternative will be diminished to time zero by…

Answered: You have been asked to evaluate two…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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6. Laura is trying to decide whether to sell her knitted hats on Etsy, at a holiday bazaar, or in a local boutique. Demand could be 0 hats/month, 10 hats/month, or 20 hats/month. Given the payoff matrix below, what is her decision under equally likely? Demand = 0 Demand = 10 Demand = 20 Etsy -$70 $80 $230 Bazaar -$60 $90 $240 Boutique -$80 $70 $220 Select one: a. Etsy and boutique. b. Etsy only. c. Etsy and bazaar. d. Bazaar and boutique. e. All 3 are equally good. f. Bazaar only. g. None of them are good options. h. Boutique only.
For the following scenarios, suggest a pricing strategies and justify why that strategy is most suitable for that business. Scenario 4: Thamid is a reputable independent financial advisor that specialises in investment advice to wealthy individuals with a net worth of over $1 million. Scenario 5: Maurice is a well-established roofer within his local area. However he is wanting to expand and gain new customers in the neighbouring town, where he currently is relatively unknown. Scenario 6: Diana is transforming her home-based invitation business to a small shop in a retail district. She will be providing the first of its kind “eco-invitation”. The invitation (when the individual is done with it) can be planted in a pot to grow into a beautiful flower hence reducing the paper waste.
Given the price information given in Exhibits 1 and cost information for both companies in Exhibits 2 & 3, find the average variable cost of making a video game produced by Sony and Microsoft.
Use the following graph for a competitive market to answer the question below. Price 2.50 2.00 1.50 0 10 Multiple Choice O 14 Quantity A black market where the price is $2.00 could result from a price 20 ceiling set at $2.50. ceiling set at $1.50. floor set at $1.50. floor set at $2.00. D
Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $2,610 of direct materials, $2,349 of direct labor, and $1,697 of overhead. Jeremy normally applies a standard markup based on cost of goods sold to arrive at an initial bid price. He then adjusts the price as necessary in light of other factors (e.g., competitive pressure). Last year's income statement is as follows: Sales $175,500 Cost of goods sold 94,770 Gross margin $80,730 Selling and administrative expenses 46,300 Operating income $34,430 Required: 1. Calculate the markup that Jeremy will use. Round your answer to one decimal place. % 2. What is Jeremy's initial bid price? Round your answer to the nearest dollar.
Yamini a home science graduate from a reputed college has recently done a cookery course. She wished to start her own venture with the goal to provide 'health food' at a reasonable price. She discussed her idea with her teacher (mentor) who encouraged her. After analyzing various options for starting her business venture, they shortlisted the option to sell ready-made and 'ready-to-make' vegetable shakes and sattu milkshakes. Then they both weighed the pros and cons of both the shortlisted options. 1. Name the function of management being discussed above and give any one of its characteristics. 2. Also briefly discuss any five limitations the function discussed in the case
Company ABC is a well-known MNC in manufacturing industry, it has presence globally in multipleregions like US, EU, and some Asian countries. The customer prefers to expand business with FedEx as itplans to increase its daily volume of shipments between different factories and outlets spread across theworld. FedEx has been a trusted partner for company ABC from several years and expects FedEx to givebest pricing option for its next fiscal year of expansion.You are the identified Analyst who shall be helping Sales with a competitive pricing structure for the ABC.Design a Pricing Strategy as follows:1. Define the Strategy & format of the Pricing for any package which would be moving across borders for Company ABC, what would be important parameters to consider for defining rates of a package? -2. Design a model to help customer develop a long-term relationship with FedEx and keep competitorsout of the equation.
Titan manufactures and sells gas-powered electricity generators. It can purchase a new line of fuel injectors from either of two companies. Cost and savings estimates are available, but the savings estimate is unreliable at this time. Use an AW analysis at 10% per year to determine if the selection between company A and company B changes when the savings per year may vary as much as 40% from the best estimates made thus far.
As purchasing agent for Eynan Enterprises in Richmond, Virginia, you ask your buyer to provide you with a ranking of "excellent" (worth 4 points), "good" (3 points), "fair" (2 points), or "poor" (1 point) for a variety of characteristics for two potential vendors, Donna Inc. (D) and Kay Corp. (K). You suggest that "Products" total be weighted 0.4, the "Company" total be weighted 0.2, and the "Service" and "Sales" totals each be weighted 0.2. The buyer has returned the following ranking. Which of the two vendors would you select? Click the icon to view the rankings. Part 2 You should choose vendor ▼ Donna Inc. Either Kay Corp. or Donna Inc. Kay Corp. , with a weighted score of ________. (Enter your response rounded to one decimal place.)
Year E F G H 0 − $90 − $110 − $100 − $120 1 20 35 0 0 2 20 35 10 0 3 20 35 20 0 4 20 35 30 0 5 20 0 40 0 6 20 0 50 180 (a)Based on the payback period, which alternative is preferred? (b)Based on future worth analysis, which of the four alternatives is preferred at 5% interest? (c)Based on future worth analysis, which alternative is preferred at 20% interest? (d)At 10% interest, what is the benefit–cost ratio for Alt. G?
Lovely Apparel must decide how many sets of assorted summer wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands. Demand Order Size Low Medium High 1 set 12 15 15 2 sets 9 25 35 3 sets 6 35 60 What decision should be made by the optimist? What decision should be made by the conservative? What decision should be made using minimax regret? NOTE: SHOW COMPLETE STEP-BY-STEP SOLUTION
VVH Training is a company that provides expert training sessions on how to run your business and make it profitable. They offer these training sessions in their offices and offer catering services during the sessions.You have been hired to complete a profitability analysis and you decided to start by completing a cost analysis of the business, in order to figure out for each training sessions, what costs are fixed and what costs are variable.You were able to gather the following information about the associated costs: • Instructor: $11,000 per session • Training Material: $2,500 per session and $35 per attendee • Catering Services:• Food: $75 per attendee • Setup/cleanup: $25 per attendee• Fixed fee: $5,000 per training session The catering company has also offered VVH Training a 1,000$ discount per session, if they are willing to leave their brochures on the dinner table as a form of advertising. VVH has accepted the offer saying that it is a no-brainerRequired:1. plot a graph that…

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