Answer:
The answer is A.
Explanation:
Operations management involves all activities which produce and deliver goods and services. Operation is a core function in any organization.
The primary objective of operations management is to make use of the organizational resources to generate or produce goods and services.
All options except option A(Understanding the drivers of customer utility) are goals of operation management
Answer and Explanation:
A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain
Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain
Both designs are assumed to be permanent
To find ROR using AW based rate of return equation, we find present value of each design and equate them:
Each design is permanent so
Present value of perpetuity:
Design 1A= 1700000+175000/r
Design 1B = 3600000+40000/r
=1700000+175000/r=3600000+40000/r
135000/r=1900000
Cross multiply
r=135000/1900000
r= 0.0710
r=7.10%
B Given that ROR=7.10% and MARR is 25%
MARR>ROR
Hence we reject both designs
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Hotel Co. should record the gross transaction fee and not only the net amount it receives from Expedia.
Explanation:
The revenue that Hotel Co. should account for in its books includes the gross transaction fee, while the collection expense that is withheld by Expedia is recorded as an expense or cost. This method ensures that the revenue due to the Hotel Co. is actually accounted for while the collection expense by Expedia is also separately accounted for. This will enable comparison with another hotel that does not use Expedia for its collection, for example.
