1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
djyliett [7]
3 years ago
11

A firm is weighing three capacity alternatives: small, medium, and large job shop. Whatever capacity choice is made, the market

for the firm's product can be "moderate" or "strong." The probability of moderate acceptance is estimated to be 40 percent; strong acceptance has a probability of 60 percent. The payoffs are as follows. Small job shop, moderate market = $24,000; Small job shop, strong market = $54,000. Medium job shop, moderate market = $20,000; medium job shop, strong market = $64,000. Large job shop, moderate market = -$2,000; large job shop, strong market = $96,000. Which capacity choice should the firm make?
Business
1 answer:
Dvinal [7]3 years ago
7 0

Answer:

<u>Since expected payoff for large job shop option is highest, firm should make large job shop option as capacity choice</u>

Explanation:

Expected payoff of any capacity alternative

= Probability of moderate acceptance x Payoff of moderate acceptance + Probability of strong acceptance x Payoff of strong acceptance

= 0.40 x Payoff of moderate acceptance + 0.60 x Pay off of strong acceptance

Thus Pay off for small job shop option

= 0.40 x 24000 + 0.6 x 54000

= 9600 + 32400

= $42,000

Pay off for medium job shop option

= 0.40 x 20000 + 0.60 x 64000

= 8000 + 38400

= $ 46,400

Pay off for large job shop option

= - 0.40 x 2000 + 0.60 x 96000

= - 800 + 57600

= $56,800

You might be interested in
t's recommended that you join at least _______ professional membership(s) in your field to indicate that you're involved and ded
Inessa [10]

Answer:

The correct answer is letter "D": one.

Explanation:

After graduation from college, <em>young professionals should enroll in one professional program</em> at least so whenever they present their resume to companies, with their <em>memberships</em>, they show they are interested in following a path career in their field of study. This will let employers have an idea of the type of person they are dealing with and are likely to get the impression the young professional is taking the application seriously.

8 0
3 years ago
Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is ava
o-na [289]

Answer: Cost per unit $15.2, cost of good sold $10,640

Explanation:

Weighted Average cost per unit = 15,200/1000

= $15.2

Ending inventory (400 × 15.2)

= 6,080

Cost of good available for sale = 15,200

Cost of good sold (700 × 15.2)

= $10,640

8 0
3 years ago
In a table setting the tines of the dessert fork should always be facing toward the
AVprozaik [17]
The person in front of you
5 0
3 years ago
Read 2 more answers
Assume you have a car worth $3,200 and investments worth another $7,500. of you owe $1,300 on credit cards and that is your only
coldgirl [10]
<span>Net worth is calculated by adding all of your assets together and then subtracting your total amount of debt. In this case, your net worth are the items you own and how much value they are worth. The car ($3200) and the investments ($7500) added together make a total of $10700. Your total debts are $1300 from your credit cards. Subtracting debts from assets ($10700 - $1300) you have a total net worth of $9400.</span>
7 0
3 years ago
Epsilon Co. can produce a unit of product for the following costs:Direct material $7.70Direct labor 23.70Overhead 38.50Total cos
Lesechka [4]

Answer:

Make since the relevant cost to make it is $58.35

Explanation:

\left[\begin{array}{cccc}&$produce&$buy&$Differential\\$Purchase&-&-62.35&-62.35\\$Manufacturing Cost&-58.35&-&58.35\\$Allocate Cost&-11.55&-11.55&-\\$Total Cost&-69.9&-73.9&-4\\\end{array}\right]

<u></u>

<u>The manufacturing cost will be:</u>

direct material 7.70

direct labor    23.70

Overhead 38.5 x 70% = 26.95

Total manufacturing cost 58.35

Allocated cost 11.55

The purchase cost is higher than our manufacturing cost of 58.35

It is better to make the unit.

The purchase option generates a differential loss for $4

7 0
3 years ago
Other questions:
  • A desktop computer now sells for 15% less than it did last year. the current price is $425. what was the price of the computer l
    11·1 answer
  • The most important difference between for-profit businesses and nonprofit organizations is that:
    15·1 answer
  • You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separ
    12·1 answer
  • Please help if you know..
    9·2 answers
  • Trak Corporation incurred the following costs while manufacturing its bicycles.
    14·1 answer
  • On December 31, Patterson Company had the following list of account balances.
    10·1 answer
  • Which if the following is not form of mass communication
    8·2 answers
  • McGinnis Construction is a cash-basis company with a fiscal year-end of June 30. McGinnis’ employees earn a normal weekly wage o
    10·1 answer
  • The type of data that has already been gathered by another source is called
    14·1 answer
  • Alma owns fifty shares of common stock in Alpha Corporation. Alma also owns eighty shares of preferred stock in the same corpora
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!