Assume that firm A is offered a supply of essential components by an outside supplier for a price less than the full cost of firm A making them. Explain why firm A might reject this offer.
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Assume that firm A is offered a supply of essential components by an outside supplier for a price less than the full cost of firm A making them. Explain why firm A might reject this offer.
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- Bill runs a business that makes custom-printed towels. It will cost him $8 each to purchase and print on towels, and he will have to pay a rent of $1,700 per month for him workshop. Based on market research, Bill estimates that he can sell custom towels for $25 each. a) Calculate the number of towels he needs to sell per month to break-even. towels b) Calculate the break-even in dollars (round off to the nearest cent).Demand for an item is constant at 40 units a week, and the economic order quantity is calculated to be 100 units. What is the reorder level if lead time is constant at 4 weeks? What is the effect of adding some margin of safety and raising the reorder level by ten units? What happens if the lead time (a) falls to 2 weeks or (b) rises to 6 weeks?A commodity has a demand function modeled by p = 106 − 0.5x and a total cost function modeled by C = 30x + 33.75, where x is the number of units. (a) What unit price (in dollars) yields a maximum profit? $ per unit (b) When the profit is maximized, what is the average cost (in dollars) per unit? (Round your answer to two decimal places.) $ per unit
- A commodity has a demand function modeled by p= 112 - 0.5x and a total cost function modeled by C = 30x + 31.75, where x is the number of units. (a) What unit price (in dollars) yields a maximum profit? x per unit (b) When the profit is maximized, what is the average cost (in dollars) per unit? (Round your answer to two decimal places.) $ x per unitDiscuss the following statement: Supply management not only buys parts or servicesfrom suppliers—it often buys a supplier’s current and future performance capability.Question 6. A producer can produce 2500 units of wood parts per day at a plant located in USA. The steady demand for wood parts is 500 units per day. The set up cost for the equipment to the company is $ 50.00. The annual carrying cost for the wood part is $ 1.00 per unit. The facility operates 200 days a year: a) Calculate the optimal run size b) Average inventory c) Total cost of carrying + ordering per year d) The numbers of production run per year e) Length of a production run in days
- Consider the graph above. If the demand curve intersects the marginal & average cost curve at 100 units, calculate the profit-maximizing quantity. Profit-maximizing quantity = Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.If the theater starts to charge $796.25 for these seats, the theater will sell (a) premium seats a week. Scalpers will charge (b) , which is (c) more than the price listed at the theater’s box office (give your answers to two decimals).A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations are given below. p=600-0.1x and C(x)= 15,000+ 130x (A) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly revenue? What is the maximum weekly revenus? The company should produce phones each week at a price of $ (Round to the nearest cent as needed.) The maximum weekly revenue is S. (Round to the nearest cent as needed.) (B) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly profit? What is the maximum weekly profit? The company should produce phones each week at a price of $ (Round to the nearest cent as needed.) The maximum weekly profit is $ (Round to the nearest cent as needed.)
- Product A cost $8 and demand for product B is 12 units then product A is reduced in price to $5 and demand for product B falls to 2 units please use the correct midpoint formula to solve thisA firm makes a product whose contribution per unit is $2,000 and takes 100 hours to make (machine time). A component of this product has a marginal cost of $400 and takes 10 hours to make (machine time). This component could be purchased from an external supplier. Assuming the firm is working at full capacity, what is the maximum price that the company is willing to pay to buy the component from the external supplier?Maximum Revenue Jesaki Electronics manufactures and sells a smartphones per week. The weekly price-demand and cost equations are, respectively, p= 536 - 0.40 x and C(x) = 19,932 + 23 x. Suppose Jesaki Electronics wants to maximize weekly revenue. Compute the following quantities. 1. How many phones should be produced each week? phones. Round to 2 decimal places. 2. What price should Jesaki charge for the phones? $ per phone. Round to the nearest cent. 3. What is the maximum weekly revenue? $ per week. Round to the nearest cent. Enter the result for 1. 11:3. N 34% 11/15 Prisc Insert Delete C F6 F8 F9 F10 F11 F12 & * Backspace Num Lock 5 8 + II