Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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- PLEASE Make a decision tree diagram and show all payoffs!!! You are a logistics manager for Alphasmart, a smartphone manufacturer. You are trying to selecta single supplier for the raw materials for your product. Two companies can provide the necessarymaterials – Hunts and Madis.Hunts has sufficient capacity to meet your demand and charges $5.00 per unit. Madis is a smallsupplier with a limited capacity, can supply up to 36,000 units per year, and charges $4.50 perunit of the raw material. If you do not get raw material from your supplier, you buy from the spotmarket at $10 per unit.Alphasmart sold 30,000 smartphones last year and estimates demand for smartphones to go up by20% with a probability of 60 percent and to remain the same as last year with a probability of40% for the first year. The same percentage increase in demand and probability would apply forthe second year as well. Alphasmart uses a discount rate of 10 percent. Assume all costs areincurred at the end of the year and…arrow_forwardTyped plz and Asap thanksarrow_forwardThe local high school soccer club need to borrow to finance a new soccer field. Repayment of the loan involves payments of $10 000.00 at the end of every 3 months for 8 years. No payments are to be made during the development period of 5 years. If interest is 8% compounded quarterly, how much did the Achievers borrow? a) $162 064.83 b) $234 683.35 c) $157 935.17 d) $175.935.71 e) $320 000.00 .arrow_forward
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