Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter A, Problem 11P

Tri-County G&T sells 150,000 MWh per year of electrical power to Boulder at $75 per MWh, has fixed costs of $82.5 million per year, and has variable costs of $25 per MWh. If Tri-County has 1,000,000 MWh of demand from its customers (other than Boulder), what will Tri-County have to charge to break even?

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An interactive television service that costs $10 per month to provide can be sold on the information highway for $15 per client per month. If a service area includes a potential of 15,000 customers, what is the most a company could spend on annual fixed costs to acquire and maintain the equipment?
An interactive television service that costs $10 per monthto provide can be sold on the information highway for$15 per client per month. If a service area includes a poten-tial of 15,000 customers, what is the most a company could spend on annual fixed costs to acquire and maintain theequipment?
Macrosoft 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…
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