In today's fast-paced business environment, decision making is a critical task for managers.Making the right decisions is vital to the success of a company, and it requires access torelevant information.Cari Pump (CP) Company manufactures water pumps. An important part of the pump is itselectronic component (EC). Cari Pump collects data with the following cost informationabout the costs of making ECs in 2019 and the expected costs in 2020:Current Costs (2019) Expected Costs (2020)Fixed manufacturing costFixed manufacturing overhead costs thatcan be avoided if ECs are not madeFixed manufacturing overhead costs of plantdepreciation, insurance, and administration thatcannot be avoided even if ECs are not madeVariable manufacturing costsDirect material cost per ECDirect manufacturing labor cost per ECVariable manufacturing cost per batch for setups,Materials handling, and quality control360,000850,000$ 200602,000360,000850,000$ 190551,800 Part BBy reference to the data in part A:1. There are both quantitative and qualitative factors for decision making bymanagement. How does the consideration of qualitative factors improve decisionsmade by managers?2. What is an opportunity cost and why should it be included when making decisions?3. What are some of the key factors that influence group interaction in a decision-making environment in business?

1. Concept Introduction: Quantitative factors in decision making involve using numerical data when…

Answered: 1. There are both quantitative and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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