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BaLLatris [955]
3 years ago
6

Company A has been experiencing lost sales and high returns recently, so they have decided to undertake a comprehensive quality

program. The program would require additional inspection of products prior to shipment at an estimated cost of 45000, and the upgrading of production equipment at an estimated cost of 400000. Company A knows that if it undertakes this program, it will be able to reduce warranty repair costs by 25000. They also know they will be able to avoid lost profits by retaining customers, but they cannot quantify that benefit with any degree of precision.Should company A go ahead with the quality program?
Business
1 answer:
Ne4ueva [31]3 years ago
6 0

Answer:

Explanation:

Incremental cost

Inspection cost prior to shipment - 45,000

Upgrading of equipment - 400,000

Incremental benefit - 25,000

The incremental cost of improving quality far outweigh the incremental benefit

Even though loss of profit was avoided by retaining existing customers , yet the quality improvement program dies not guarantee additional customers and profit to write off or reduce  the incremental cost .

Therefor , it is not advisable fort the company to go on with the quality program.

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Doug is the vice president of product development for a corporation that makes flavored honey. Doug proposes to the board that t
kogti [31]

Answer:

most likely will not be held responsible because of the business judgment rule.

Explanation:

A business judgement rule is a legal provision that protects the board of a company from frivolous legal actions as flregards its business decisions.

Boards of companies are assumed to act in good faith, within their fiduciary standards of loyalty, prudence and care that the board owes to shareholders.

It will have to be proven that the board blatantly violated a code of conduct, otherwise the court will review or question it's decisions.

8 0
2 years ago
Read 2 more answers
Suppose a monopolist produces two different products. If the marginal cost of producing one is lower than the marginal cost of p
soldier1979 [14.2K]

Answer:

perfectly price discriminating.

Explanation:

here are the options to this question :

not maximizing its profit.

imperfectly price discriminating.

not price discriminating.

perfectly price discriminating.

perfect price discrimination also known as first-degree discrimination is when a seller sells his product at the maximum possible price for each unit consumed. Due to the price variance, the seller captures all available consumer surplus.

A monopoly is when there is only one firm operating in an industry.

4 0
2 years ago
Representatives from Kraft spent several months with consumers in their kitchens, attempting to understand what they wanted in r
sergiy2304 [10]

Answer:

d. ethnographic research

Explanation:

Ethnographic research -

It is a type of research method , where the people tries to interact with the people in real life , in order to get the best and most pure information regarding the research topic , is referred to as ethnographic research .

The method is very effective and efficient to attain knowledge for the research topic .

Hence , from the given scenario of the question ,

The correct option is  d. ethnographic research .

       

7 0
3 years ago
What could be two reasons why the data might not support the hypothesis?
Degger [83]
Below are the <span> two reasons why the data might not support the hypothesis:
</span><span>
1) The hypothesis was wrong 
2) The data is wrong

A hypothesis is a proposed thought that may clarify a perception or marvels. It is confirmed by testing it. In the event that the information bolsters the theory, at that point, we view the speculation as checked and genuine. Assuming, be that as it may, the information does not bolster the speculation or discredits it, at that point the theory is in a bad position, and we need to concoct an alternate speculation to clarify the perceptions.
</span>
7 0
2 years ago
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. T
mixas84 [53]

Answer:

b. 5.27%

Explanation:

First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;

Face value; FV = 1000

Maturity of bond; N = 15*2 = 30

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Semi annual interest rate; I/Y = 3.25%

then compute Price; CPT PV= 1,213.547

Next, with the PV , compute the yield to call (I/Y) given 6 years;

Maturity of bond; N = 6*2 = 12

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Price; PV= -1,213.547

Face value; FV = 1,050

then compute Semiannual interest rate; CPT I/Y = 2.636%

Convert the semiannual rate to annual yield to call = 2.636*2 = 5.27%

7 0
3 years ago
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