What would be the pros and cons of using spot exchange

Assignment Help Business Economics

Reference no: EM13214736

Amacon is a bicycle manufacturer that produces approximately 5,000 bikes each month. In order to meet that demand, Amacon needs 10,000 rubber tires at its assembly plant on the last Thursday of each month. Please explain the answers to the following questions.

a. What would be the pros and cons of using spot exchange to obtain the tires?

b. What would be the pros and cons of using a contract to obtain the inputs?

c. What would be the pros and cons of vertically integrating to obtain the tires?

Reference no: EM13214736

Questions Cloud

What is wetland mitigation : What is wetland mitigation? How is it different from wetland restoration and what is the main mitigation goal of the usfws for this project? Is this goal a direct response to the pollutant release at the re? nery

Evaluate the relative importance of economies of scale : Evaluate the relative importance of economies of scale and comparative advantage in causing the following.

How much output did the average worker produce : If 150 million workers produced America's GDP in 2010, according to the "World View" above, how much output did the average worker produce?

Does the firm have positive or negative financial leverage : a. Compute the profit margin on sales ratio, the return on equity and the return on assets, rounding calculations to two decimal places. b. Does the firm have positive or negative financial leverage The com¬pany reported the following information fo..

What would be the pros and cons of using spot exchange : Amacon is a bicycle manufacturer that produces approximately 5,000 bikes each month. In order to meet that demand, Amacon needs 10,000 rubber tires at its assembly plant on the last Thursday of each month. Please explain the answers to the followi..

Explain level of incremental sales is associated with pizza : Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza?

Compute the accounts receivable and inventory turnover ratio : Computation and evaluation of activity ratios. The following data relate to Alaska Products, Inc: 20X5 20X4Net credit sales $832,000 $760,000 Cost of goods sold 530,000 400,000 Cash, Dec. 31 125,000 110,000Average Accounts receivable 205,000 156,000

What does the fisher effect say about the relationship : What does the Fisher Effect say about the relationship between the nominal interest rate (e.g., the federal funds rate) and the inflation rate?

What is the argument against attempting to balance : What is the argument against attempting to balance the Federal Government budget rapidly at the present time via either deep cuts in Federal Government spending on goods and services or via sharp increases in federal income tax rates?

User Account

All Pages