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Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) Refurbish the old equipment at a cost of $800, (b) make major modifications at a cost of $1,100, or (c) purchase new equipment at a net cost of $1,800. If the firm chooses to refurbish the equipment, materials and labor will be $1.10 per board. If it chooses to make modifications, materials and labor will be $0.70 per board. If it buys new equipment, variable costs are estimated to be $0.40 per board.
a) Graph the three total cost lines on the same chart.
b) Which alternative should Ski Boards, Inc., choose if it thinks it can sell more than 3,000 boards?
c) Which alternative should the firm use if it thinks the market for boards will be between 1,000 and 2,000?
One of the interesting debates in project management is how to determine when a change request should be handled only by the PM versus when it should be submitted to the CCB. What criteria should we use to help us make this decision?
Examine “interventions,” or planned activities for improving organizational effectiveness. Most successful organizational change efforts include steps for increasing opportunities for employee involvement. Review the four key elements that promote in..
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First, elaborate on one organization that exemplifies Market Penetration or Market Development! Second, Chapter 8 highlights at least one failure with respect to unrelated diversification/implementation, offer another example?
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