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Montano1993 [528]
3 years ago
14

The management of Madeira Computing is considering the introduction of a wearable electronic device with the functionality of a

laptop computer and phone. The fixed cost to launch this new product is $900,000. The variable cost, which includes material, labor, and shipping costs, is uncertain. The Normal Probability Distribution with an average of $200 and a standard deviation of $12 is assumed to be a good description of the variable cost. The demand for the product is expected to be between 20,000 units and 30,000 units (Integer Uniform Distribution). The product will sell for $250 per unit.
Required:
A) Develop a what-if spreadsheet model computing profit for this product in the base case, worst-case, and best-case scenarios.
Best-case profit: $ ________
Worst-case profit: $ _______
Base case profit: $ ________
Business
1 answer:
krek1111 [17]3 years ago
5 0
600 because 30000/250
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You can buy a car that is advertised for $24,600 on the following terms: (a) pay $24,600 and receive a $4,600 rebate from the ma
Vadim26 [7]

Answer:

A. $20,000

B. $17,234.18

C.Option (b)

Explanation:

Obviously, the option with lower Present Value would be the best option to buy the car. The Present Value of the options can find out as following

REQUIREMENT A

Price of car = $24,600  

Rebate = $4,600

Present value of the payments for option  = Price of the car – rebate  

Present value of the payments for option (a) = $24,600 - $4,600

Present value of the payments for option = $20,000

REQUIREMENT B

We can use the following Present Value of an Annuity formula to calculate the present value of the payments

PV of the payments for option  = PMT * [1-(1+i) ^-n)]/i

PV of the payments for option (b) (PV) =?

Monthly payment PMT =$410 per month

Number of payments n = 5 years *12 months = 60

Monthly interest rate i=1.25% per month or 0.0125

PV of the payments for option  = $410 x [1- (1+0.0125) ^-60]/0.0125

PV of the payments for option  = $17,234.18

REQUIREMENT C.

Which is the better deal?

Option (b) is better deal as the present value of payments ($17,234.18) is less than Present value of the payments for option (a); $20,000.

3 0
3 years ago
The team-centered decision-making model is preferred when: relevant information and expertise is found in a few select individua
Law Incorporation [45]

Answer:

Participation is needed to obtain necessary commitment

Explanation:

Decision Making Process is a process of Evaluation of various alternatives available through several methods like forecasting.

During evaluation, risk, time and the efficiency of these alternatives are checked.

Team-centred decision making style is preferable when;

1. Relevant information and how to go about issues cannot be not properly arranged by one person

2. Participation is needed for commitment

3. Making one individual as the central power hurts the team

4. If an uncommon decision is to be made

8 0
3 years ago
A corporation entered into a contract with an owner of land for the transfer of land at a price of $500,000 in sixty days. The c
Zielflug [23.3K]

Answer:

Yes, because the corporation remains liable to the owner under the contract

Explanation:

The above answer is true because in this case, there is no limit to the assignment of the contractual rights between the two parties, hence this assignment of a contract would be treated as both an assignment of rights and a delegation of duties.

Therefore, while the corporation in this case has delegated its duties and assigned its rights under the contract to the developer by assigning the contract to the developer, the corporation is still considered to be liable to the owner for payment of the purchase price.

And given the fact that the developer is not as creditworthy as the corporation, and thus there is a greater chance that the developer will be unable to pay the purchase price, the owner has the rights under the contract arrangement to contractually compel the corporation to do so.

4 0
2 years ago
The first step in the target marketing process is to develop positioning strategies. determine whether to use a market segmentat
Hunter-Best [27]

Answer:

Identify markets with unfulfilled needs.

Explanation:

The first step in the target marketing process is to identify markets with unfulfilled needs. The organization first needs to study what the customers are looking for. Either they will find a gap and see what need is still unfulfilled or they will create a need.

In either of the cases, they will be looking for chances to make a product that the customers will be tempted to buy, which would lead their sales to increase.

4 0
3 years ago
Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felinas, asked you to assist him in estimating his main
dmitriy555 [2]

Answer:

Fixed costs= 510

Explanation:

Giving the following information:

Month Maintenance Expense Machine Hours

1 $ 3,480 2,380

2 3,670 2,480

3 3,850 2,580

4 3,980 2,610

5 3,980 2,460

6 4,400 2,620

7 3,970 2,600

8 3,780 2,570

9 3,500 2,390

10 3,120 2,260

11 2,960 1,650

12 3,240 2,250

To calculate the fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,400 - 2,960) / (2,620 - 1,650)

Variable cost per unit= $1.484536

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,400 - (1.484536*2,620)

Fixed costs= $510

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,960 - (1.484536*1,650)

Fixed costs= 510

3 0
2 years ago
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