The Irontown Independent School District wants to sell a parcel of unimproved land that it does not need. Its three best offers are as follows:
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As the financial adviser for the school district, which offer would you prefer?
To prevail in the present economy, associations should gain by the abilities, information, capacities, and experience of their workers. Examination shows that interests in human resources work on authoritative execution including group viability, representative maintenance, and advancement in both the private and public sectors. At the end of the day, organizations that draw in and create solid workers by focusing on enrolling, putting resources into proficient development openings, and building positive working environment societies will in general have more prominent effectiveness and better results
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- Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line. After thinking through the production process and the costs of raw materials and new equipment, Williams estimates the variable costs of each unit produced and sold at $8 and the fixed costs per year at $70,000. If the selling price is set at $13.50, Williams forecasts that first-year sales would increase to 17,000 units. Which pricing strategy ($15.00 or $13.50) would result in the greater total contribution to profits?arrow_forwardThe city of Winnipeg is considering whether to build a new public ice rink. This rink would have a capacity of 800 ice skaters per day, and the proposed admission fee is $6 per individual per day. The estimated cost of the ice rink, averaged over the life of the rink, is $4 per ice skater per day. The city of Winnipeg has hired you to assess this project. Fortunately, Ottawa already has an ice rink, and the city of Ottawa has randomly varied the price of that rink to find how price affects usage. The results from their study follow: Ice rink price Number of ice skaters per day $8 $10 $4 $6 $2 per day 500 200 1100 800 1400 a. If the ice rink is built as planned, what would be the net benefit per day from the ice rink? What is the consumer surplus for ice skaters? b. Given this information, is an 800-ice rink the optimally sized ice rink for Winnipeg to build? Explain.arrow_forwardMacrosoft Corporation is a software giant in personal computers (PCs). Although its flagship operating system ‘Meadow’ is still dominating in the PC market, the burgeoning of tablets and smartphones in recent years has been chewing up the PC market. In fact, the numbers of new Meadow users was shrinking every year. In view of this situation, Macrosoft is considering making an offer to purchase Oats Production, and upstart smartphone producer in China. The management of Macrosoft hopes that the acquisition could allow the company to explore the smartphone software market and bring in new revenue to the firm. The treasurer of Macrosoft has collected the following information: Macrosoft Corporation Oats Production Shares outstanding 1,500,000 800,000 Earnings $8,400,000 $2,400,000 Divdends $4,200,000 $1,800,000 Price-earnings ratio 18X 15X The treasurer also discovers that the earnings and dividends of Oats will grow at a constant rate of 6% every year. If the acquisition…arrow_forward
- Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein's customers have already placed orders that together exceed the combined capacity of Klein's two plants. Klein's management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries, different prices can be charged because of the various industry pricing structures. However, slightly different production costs at the two plants and varying transportation costs between the plants and customers make a "sell to the highest bidder" strategy unacceptable. After considering price, production costs, and transportation costs, Klein established the following profit per unit for each plant-customer alternative. Plant Clifton Springs Danville Plant Clifton Springs 2 Danville D₁ D3 D₂ $32 $34 $32 $40 $38 $34 $30 $28 The plant capacities and customer orders are as follows. Customer Capacity (units) 5,000 3,000 3 4…arrow_forwardLakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands. Order size 1 lot 2 lots 3 lots (a) Show a regret table. Order size 1 lot 2 lots 3 lots 13 9 6 Low 13 9 6 Low Demand Medium 16 24 32 16 24 32 High 16 32 61 Demand Medium (b) What decision should be made by the optimist? O 1 lot O2 lots 3 lots 16 32 61 High Maximum Regret 2:06 PMarrow_forwardWhat would be the best way to estimate whether a piece of land could be used to manage an existing (at a profit) in the relatively short- and long-run? Explain what information you would need to make the decision what would be a “Second best” alternative to the criteria you picked first?arrow_forward
- Scenario One: An 86-year widow comes in monthly to have her blood drawn and monitored ever since her heart attack 2 years ago. Her husband has recently passed away and she has no family nearby to help her. She has Medicare but does not have supplemental insurance to cover office visits. When leaving the office today, she starts to cry and tell you that she can no longer afford her blood pressure medications, cholesterol medications, blood work, and office visits each month. She will not be able to get her medications refilled unless she sees the doctor and has blood work each month. She currently owes $180 on her account today. Scenario 2: A 19-year-old mother of 3 children, all under the age of 5, brings in all of the kids today for their recommended check-ups and vaccinations. She does not have insurance for any of the children as she was denied Medicaid based on a previous fraud. She has been diligent paying for the children’s healthcare, with assistance from a grandmother, but she…arrow_forwardSuppose that the management of Theme Park, Inc., has decided that there is a.35 probability that the motel’s application will be approved.a. If management uses maximum expected monetary value as the decision criterion, which alternative should it choose?b. Represent this problem in the form of a decision tree.c. If management has been offered the option of a temporary lease while the town planning boardconsiders the motel’s application, would you advise management to sign the lease? The leasewill cost $24,000.arrow_forward1. Kirsten is trying to decide where to go for her well-earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel. Given the costs and probabilities of bad weather given below, which destination should she choose? Camping cost Motel cost Probability of bad weather Nevada $21.2 $80.9 0.2 Oregon $15.9 $84.6 0.4 California $30 $95 0.1 a. California, because its EMV = $33.14 b. Nevada, because its EMV = $33.14 c. California, because its EMV = $36.5 d. Any of the 3 choices. e. Oregon, because its EMV = $43.38 f. Nevada, because its EMV = $43.38 g. None of the 3 choices. h. Oregon, because its EMV is $36.50.arrow_forward
- The owner of a food truck implemented a new location strategy so that they would be better positioned near a crowded office park during the lunch hour. How should they evaluate the new location strategy?arrow_forwardA well-known plastic mould and die manufacturer in Toronto intends to expand internationally in anticipation of strong demand and expansion in the plastic die manufacturing sector. use the table beneath. Using the Maximax, Maximin, and equally likely conditions, assist the business in making the best option in an unclear situation. 0.5 for a highly favourable condition, 0.2 for an average demand, and 0.3 for an unfavourable state are the probabilities linked with the states of nature.a) Choose the course of action that will give Andrew the highest predicted monetary value (EMV).b) Determine the anticipated value of perfect information (EVPI).arrow_forwardThe Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 2,630 $ 10,783 February 3,130 $ 12,833 March 3,640 $ 13,583 April 1,090 $ 4,469 May 1,770 $ 7,257 June 1,730 $ 7,093 July 4,440 $ 14,854 August 3,860 $ 13,815 September 2,170 $ 8,897 October 1,210 $ 4,961 November 1,790 $ 7,339 December 2,930 $ 12,013 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) What other factors in addition to…arrow_forward
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