Answer:
A) initial outlay = $150 million
Cash flow year 1 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 2 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 3 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 4 = [($30 - $25) x 0.6] + $25 + ($25 x 60%) + $50 = $93
B) Using a financial calculator, NPV = -$16.85 million
C) cash flow year 4 should increase by $24.667 million, meaning that the selling price must increase by $$24.667/0.6 = $41.11 million
minimum selling price $25 + $41.11 = $66.11 million
Six
sigma is a philosophy and set of methods companies use to eliminate defects in
their products and processes<span>.
It also seeks to reduce variation in the processes that
lead to product defects. It measures quality,
process for Continuous Improvement and enabler for culture
change so culturally six sigma means companies must learn how to be nearly
flawless in executing key processes and achieving business imperatives. Quantitatively six sigma means the average process generates no
more than 3.4 defects per million. Therefore, based on the figures given above
the defects per million opportunities (DPMO) is 15, 333 and the defective rate
us 1.533% and the passed rate is 98.467%.</span>
Answer: The right communication channel to use in IMC is C. the one that will connect to the desired recipients.
Explanation: IMC stands for integrated marketing communications. IMC helps make sure that all types of communication forms are presented in a way where others can understand the message. When the message is presented in a way others are able to understand, the marketing and promotional tools are all working together correctly.
Answer:
increase by $15,600
Explanation:
Fixed cost remains constant throughout a period. If production is through the use of idle capacity, fixed cost will not change.
Change is income will result from the total contribution margin realized from the special order.
The total contribution margin is the contribution margin per unit multiplied by total units.
Contribution margin per unit = special offer price - variable costs
=$23.40- $18.20
=$5.20
change in income will be $5.20 x 3000
=$15,600 increase
Answer:
The correct answer is: marginal product; average product of labor
Explanation:
Marginal product of a resource or input can be defined as the increase in output because of employing an additional unit of that resource or input.
It can be calculated by the ratio of change in output to change in input.
The variable factor in the short run is labor. Average unit produced by each labor unit is termed as the average product of labor.
It is calculated by the ratio of total output to quantity of labor employed.
