Explain backward vertical integration

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1. Describe the e-procurement system and its advantages over the manual system. Arethere any disadvantages to the electronic system? Do you think the e-procurementsystem will ultimately replace the manual system? Why or why not?

Please have a discussion of at least 100 words.

2. Explain backward vertical integration and list at least 4 advantages compared to backward vertical integration.

3. What are micro-purchases? How can they be used to improve public procurement?

4. If a firm's net income (profit before taxes) is $120,000 and it has total assets of $1.2 million, what is its return on assets?

For full credit, please provide the formula for calculating return-on-assets, at least one step of calculation, and the answer.

5. If a firm's cost of goods sold is $2.5 million and its average inventory is $500,000, what is the inventory turnover?

For full credit, please provide the formula for calculating return-on-assets, at least one step of calculation, and the answer.

6. You are given the following information:

Cost

Make Option

Buy Option

Fixed cost

$125,000

$8,000

Variable cost

$15

$17

a. Find the break-even quantity. Please provide the formula, at least one step of calculation and the correct break-even quantity for full credit.

b. If the expected production quantity is 100,000 units, should the firm make or buy the component? Please first answer Yes/No and then provide the reasoning.

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Reference no: EM13295834

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