Managers transform a portion of organizational resources into appropriate organization member behavior mainly by performing acti
1 answer:
You might be interested in
Answer:
Proposal A: 5,455 units
Proposal B: 5,770 units
Explanation:
The break-even point is the number of units required for the revenue to equal the total costs.
For proposal A:
Fixed Costs = $60,000
Variable Costs = $13 / unit
Selling Price = $24 / unit
For proposal B:
Fixed Costs = $75,000
Variable Costs = $11 / unit
Selling Price = $24 / unit
Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.
Answer:
The EMV for option a is $5,679,100
The EMV for option b is $5,719,200
Therefore, option b has the highest expected monetary value.
Explanation:
The EMV of the project is the Expected Money Value of the Project.
This value is given by the sum of each expected earning/cost multiplied by each probability.
So
a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing.
There are these following probabilities:
77% probability of selling 100,000 units at $610 each.
23% probability of selling 70,000 units at $610 each.
So
(b) having the value analysis team complete a study.
There are these following probabilities:
74% probability of selling 85,000 units at $720.
26% probability of selling 70,000 units at $720.
The cost of value engineering, at 120,000. So this value is going to be dereased from the EMV.