Chemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage, demanding some change. After rigorous research, management came up with the following decision variables Expansion: 45% chance of gaining 1,500,000; 55% chance of losing X New Product: 50% chance of gaining 900,000; 50% chance of losing 576354 What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values?
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- Chemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage, demanding some change. After rigorous research, management came up with the following decision variables.Expansion: 45% chance of gaining 1,500,00; 55% chance of losing XNew Product: 50% chance of gaining 900,000; 50% chance of losing 539740What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values?A vendor cost Ρhр 75.00 to buy the things he needs make home made рulvoron. A рrivate рark allows him to sell his рroduct inside the amusement рark. However, he will be charged Ρhр 1.00 for each рulvoron sold. Calculate the break – even рoint if the рrice he charge for a рulvoron is Ρhр 1.50. Solve the рroblem by formula and by graрh.Auria will produce a venicle component and knows that each start generates a cost of 5,000 pesos. Its production capacity is 150,000 units and the cost per unit is $ 200, tne annual demand is 100,000 units, and the inventory rate is 15% per month. Consider that the product allows shortages and the cost of goodwill loss is $ 0.3 for each unit of said items, while the penalty cost if they do not deliver is S 30 / unit / year. a) Calculate the total annual cost and the quantity Q required.
- A European consortium has spent a considerable amount of time andmoney developing a new supersonic aircraft. The aircraft gets high markson all performance measures except noise. In fact, because of the noise,the consortium’s management is concerned that the U.S. government mayimpose restrictions on some of the American airports where the aircraftcan land. Management judges a 50–50 chance that there will be somerestrictions. Without restrictions, management estimates its (presentdiscounted) profit at $125 million; with restrictions, its profit would beonly $25 million. Management must decide now, before knowing thegovernment’s decision, whether to redesign parts of the aircraft to solvethe noise problem. The cost of the redesign program is $25 million. Thereis a .6 chance that the redesign program will solve the noise problem (inwhich case, full landing rights are a certainty) and a .4 chance it will fail. Using a decision tree, determine the consortium’s best course ofaction, assuming…Metropolitan Hospital has estimated its average monthly bed needs asN = 1;000 + 9Xwhere X = time period (months); January 2002 = 0N = monthly bed needsAssume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years:MONTH ADJUSTMENT FACTOR (%)January +5April −15July +4November −5December −25a. Forecast Metropolitan’s bed demand for January, April, July, November, and December 2007.b. If the following actual and forecast values for June bed demands have been recorded, what seasonal adjustment factor would you recommend be used in making future June forecasts?YEAR FORECAST ACTUAL2007 1,045 1,0962006 937…A firm hasi nitial value V and has an investment opportunity costing 400 that will yield it an endpoint value of V +500 but it has to issue new shares to raise the required 400. Initially its owners own 10 shares that are currently selling at a market price of 80 per share. Note that this price may not necessarily reflect the true value per share– only the firm itself knows this. If it is indifferent between issuing and not issuing at the market price of 80, what is the initial true value of the firm V?
- Eastman Publishing Company is considering publishng an electronic textbook about spreadsheet applications for business. The fixed cost of manuscrpt preparation, textbook design, and web site construction is estimated to be $160,000, Varable processing costs are estimated to be $6 per book. The publisher plans to sell single user access to the book for $46. (a) Buld a spreadsheet model in Excel to calculate the profit/loss for a given demand, What profit can be anticipeted with a demand of 3,500 copies? For subtractive or negative numbers use a minus sign. (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 trn test the sensitivity of profit to demand. Breskeven occurs where profit goes from a negabve to a positive value, that s, breakeven is where total revenue - total cast yielding a profit of zero. In which interval of demand dons breakeven occur? (1) Breakeven appears in the interval of 4,200 to 4,800 copies. (i) Breakeven appears in the interval of 4,000 to…Your firm uses a continuous review system and operates52 weeks per year. One of the SKUs has the followingcharacteristics.Demand 1D2 = 20,000 units>yearOrdering cost 1S2 = $40>orderHolding cost 1H2 = $2>unit>yearLead time 1L2 = 2 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation ofweekly demand of 100 units.Current on-hand inventory is 1,040 units, with no scheduledreceipts and no backorders.a. Calculate the item’s EOQ. What is the average time, inweeks, between orders?b. Find the safety stock and reorder point that provide a95 percent cycle-service level c. For these policies, what are the annual costs of (i) holdingthe cycle inventory and (ii) placing orders?d. A withdrawal of 15 units just occurred. Is it time to reor-der? If so, how much should be ordered?SHOW COMPLETE SOLUTION PLS BADLY NEEDED ASNWERS
- The owners of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is a flat salary plus 75% of first $150,000 of profit, and then 10% of profit over $150,000. The purchase price for the company is set as 4½ times earnings (profit), computed as average annual profitability over the next five years. Does this contract align the incentives of the new vice president with the goals of the owners?Estimate the value of money multiplier if the LRR is 21℅An automobile spare part is sold for $15 per unit. The VC are $3 per unit, 15000 units of the product are sold annually and a profit of $80,000 is made. The change to be made in the design of the product will increase the VC by 20% and the FC by 10%, and the sales amount will increase to 18000 units. a) At what selling price do we break even? b) What is the annual profit when the selling price remains the same ($12/unit)?