Lisa's Pizza is trying to compete with the larger Domino's Pizza down the street for customers. Lisa here is trying to practice operations management.
More about operations management:
Operations management is a branch of management that focuses on planning, organising, and redesigning the production process for goods or services as well as business operations.
The management of business procedures to achieve the best level of productivity within an organisation is known as operations management (OM). In order to increase an organization's profit, it is concerned with transforming resources like labour and materials into products and services as effectively as feasible.
Teams in charge of operations management strive to produce the maximum net operational profit by balancing costs and revenues.
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Answer:
D) return on equity will increase.
Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.
(1) Reduction in the cost of operations or production of goods and services
(2) increase in the price of the product etc.
If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.
Answer:
Option B (By embracing lower operating costs it's much more likely to handle price rises) is the correct choice.
Explanation:
- Cost management or leadership seems to be an organizational practice introduced by Michael Porter. This helps build organizational competitive benefits. Price leadership relates to supplying the market with the cheapest operating costs, which varies from the pricing strategy.
- Sometimes it is driven by performance, size, complexity, reach, infrastructure as well as the perspective of the organization.
Some other options given should not be concerning the condition in question. And the correct response would be alternative B.
Answer:
Assuming that Hal spends all of his income on honey and milk, the combination of milk and honey that will maximize his total utility is <u>2</u> jars of honey and <u>4</u> gallons of milk.
Explanation:
This question is missing a table that should be as follows:
quantity total util. marginal quantity total util. marginal
of milk from milk utility per $ of honey from honey utility per $
1 32 16 1 44 11
2 60 14 <u> 2 84 10</u>
3 84 12 3 120 9
<u>4 104 10</u> 4 152 8
5 120 8 5 180 7
6 132 6 6 204 6
7 140 4 7 224 5
8 144 2 8 240 4
We should purchase quantities that yield the same marginal utility per dollar spent, options are:
- <u>4 gallons of milk and 2 jars of honey ⇒ total cost = $8 + $8 = $16</u>
- 5 gallons of milk and 4 jars of honey ⇒ total cost = $10 + $16 = $26
- 6 gallons of milk and 6 jars of honey ⇒ total cost = $12 + $24 = $36
- 7 gallons of milk and 8 jars of honey ⇒ total cost = $14 + $32 = $46
Answer:
The market's required rate of return on Sure's stock is 16.5%
Explanation:
The required rate of return is the minimum return that investors would accept to invest in a stock based on the risk associated to that stock. The required rate of return can be calculated using the Capital Asset Pricing Model (CAPM). The formula for required rate of return under this model is,
Required rate of return (r) = rFR + Beta * (rM - rFR)
Where,
- rFR is the risk free rate
- Beta is the stock's measure of risk
- rM is the expected return on market
Thus, for Sure Tool, the required rate of return is,
r = 0.04 + 1.25 * (0.14 - 0.04)
r = 0.165 or 16.5%
