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Claris Water Company makes and sells filters for public water drinking fountains. The filter sells for $50. Recently a make/buy analysis was conducted based on the need for new manufacturing equipment. The equipment first cost of $200,000 and $25,000 annual operation cost comprise the fixed cost, while Claris's variable cost is $20 per filter. The equipment has a 5-year life, no salvage value, and the MARR is 6% per year. The decision to make the filter was based on the breakeven point each, but this offer was rejected by the president as entirely too expensive. Perform the breakeven analysis of the two options and determine if the "make" decision was correct. Develop and use the profit relations for both options to verify the preceding answers.
Calculate the chi-square statistic and degrees of freedom for the following set of data for 300 people
But it might happen that both ?rms want to expand or contract at the same time. Does this constitute an argument against geographical concentration?
Suppose a monopolist producing Q units of output faces the demand curve P =20 -Q. Its total cost when producing Q units of output is TC = F + Q2, where F is a fixed cost. The marginal cost is MC = 2Q. a) For what values of F can a profit-maximizing..
write the economic analysis section of a business proposal. this will include statements about the market structure and
When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..
Several key events in global economic history that are related to this steep rise in oil prices and what their effects have been.
The question is related to economics and it is about two firms in the Cornout market merge into one firm, what would the merger result in? How much of marginal cost would prevail in the market, etc.
The table shows the demand and supply schedules for US wheat market. The US Farm Bill 2012 indicates that the domestic price of wheat will be set at $300 per tonne, which is above the market equilibrium level of $250 per tonne, in order to support fo..
How a competitive market arrives at equilibrium and why the price of tomatoes has risen - Discuss the factors that affect the price elasticity of demand as they apply to tomatoes and make a suggestion based on your appraisal as to the likely price..
a economically when is it best for a firm to outsource or contract-out some part of its production? b provide an
Recalculate the free trade equilibrium and the effects of a 0.5 speci?c tariff by Home. Relate the difference in results to the discussion of the small country case in the text.
Find Dirks expected utility from this prospect - Compare the variance of the risky prospect with the pooling scheme and without the pooling scheme.
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