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katrin [286]
2 years ago
15

Assume that each unit demanded generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or

lose in a month (in dollars) if it places an order based on your answer to part (a) and the actual demand for the item is 300 units
Business
1 answer:
Vanyuwa [196]2 years ago
4 0

Answer:

Note: The full question is attached as picture below

a. Let X is denoted as company’s monthly demand, P(X=x) is denoted as the probability of the company’s monthly demand.

The expected value is obtained below:

E(X) = (300*0.20) + (400*0.30) + (500*0.35) + (600*0.15)

E(X) = 60+120+175+90

E(X) = 445

b. The expected value of the monthly demand is 445. The each unit demands the revenue to generate is $70 and their cost is $50.

The gain/loss of the company = (300*(70−50)) - (145*50)

The gain/loss of the company = (300*20) - (145*50)

The gain/loss of the company = 6,000 - 7,250

The gain/loss of the company =−$1,250(Loss)

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Answer:

The correct answer is option C.

Explanation:

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The market demand curve, on the other hand, is downward sloping. So whatever be the market elasticity of demand, the elasticity of individual firm will be infinite.

5 0
3 years ago
To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all tha
vaieri [72.5K]
I believe the answer is: 

- What can go wrong?
This question is asked to find out the potential risk that may occur after purchasing the product.

- What is the likely return?
This question is asked to find out potential benefit from consuming the product

-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk

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4 0
3 years ago
Read 2 more answers
1- In 2013, Walmart decided to enter the Indian market in a joint-venture with Bharti Enterprises. Based upon your analysis of W
Ivahew [28]

Answer:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

Explanation:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

4 0
2 years ago
A difference between operations and projects is that operations end when their objectives have been reached, whereas projects do
maxonik [38]

Answer:

FALSE

Explanation:

It is False that the difference between operations and projects is that operations end when their objectives have been reached, whereas projects do not.

The reverse is true because projects are time-bound and they come to an end when their objectives have been achieved, but company operations are expected to continue as a going concern.

A project is an activity to meet the creation of a unique product or service, an thereafter terminates while operations are day to day routine activities that are expected to continue

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3 years ago
After the manager and employee work together to set the employee’s objectives, what is the next step of mbo?.
mina [271]

The next step after setting objectives is to assign or cascade those objectives to the team members or employees.

<h3>What are the other steps in the MBO process?</h3>

After assigning the objectives to the employees (usually through a line manager), the next steps are to:

  • Monitor performance of those objectives
  • Evaluate performance
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Please see the link below for more about Management by Objective:

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