Which alternative should ski boards inc choose

Assignment Help Operation Management
Reference no: EM131361178

Problem -

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?

Reference no: EM131361178

Questions Cloud

Fundamental differences between special-cause variation : Compare and contrast the fundamental differences between special-cause variation and common-cause variation. Provide one (1) business process example of each variation to support your response.
Discuss about the application of tort law application : Do you think the application of tort law application to mental health is different in the us when compared to Bangladesh?
What is the percentage change in the bond price : A 9-year bond has a yield of 13.5% and a duration of 8.63 years. If the BOND'S yield changes by 60 basis points, what is the percentage change in the bond’s price? Is this an increase or decrease?
Result of the contingent survey : A poll done for Newsweek found that 13% of Americans have seen or sensed the presence of an angel. A contingent doubts that the percent is really that high. It conducts its own survey. Out of 100 Americans surveyed, only 3 had seen or sensed the p..
Which alternative should ski boards inc choose : 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, Which alternative should Ski Boards, Inc., choose if it thinks it can sell more than 3..
What is the percentage change in price for zero coupon bond : What is the percentage change in price for a zero coupon bond if the yield changes from 6.5?% to 8?%? The bond has a face value of ?$1,000 and it matures in 19 years. Use the price determined from the first? yield, 6.5?%, as the base in the percentag..
In which areas do you see similarities to our approach : Box 5.1 in your textbook, "Chinese Negotiation Frames", identifies five concepts that someone attempting to negotiate in China should recognize. In which areas do you see similarities to our approach to framing?
Sketch the corresponding figure for silicon : Suppose that Figure 23.2a is a sketch of the band structure for aluminum. Sketch the corresponding figure for silicon. Aluminum has 13 electrons, with one in the outermost level, and silicon has 14 electrons.
Ten-year zero coupon bonds issued : Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 11.38 percent, what is the value of these bonds?

Reviews

Write a Review

 

Operation Management Questions & Answers

  Describe the people issues

Describe the "people" issues that were affecting Colgate's ability to use business intelligence.

  What are todays workers and americas view of the unions

What are today's workers and America's view of the unions

  Calculate the productivity in sales revenue

As operations manager. you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report:

  Determine the total cost of quality

The costs of quality are given by the following equations, Determine the total cost of quality when there are no defectives. D= 0 and product quality is perfect.

  Find a description of a training program

Using the Internet, find a description of a training program. Consider the learning process and the implications for the learning process for instruction discussed in the chapter. Evaluate the degree to which the program facilitates learning. Briefly..

  What is the breakeven in dollars

GX Corporation is developing a new innovative product. To launch the product, fixed costs are set at $140,000. Variable Costs are set at $75. They desire to break even by selling 1,000 units.

  Research and self profile

Using free secondary data sources, attempt to research and profile YOU as a customer. Go to at least five sources of information (more if possible) and compile the information in a self-profile. List categories of information were you able to obtain ..

  Compute the single exponential smoothing forecast

Compute the single exponential smoothing forecast for this information using an ad of .30 and an initial forecast. Compute the mean absolute deviation (MAD) for each forecast.

  Using the most recent statistics available

This report allows for an assesment of world trade flows by country, region, and main product or service categories. Using the most recent statistics available, identify the top five countries that lead in export and import of merchandise, respect..

  Compute the amount of conversion cost actually assigned

Compute the amount of conversion cost actually assigned to each unit produced. What happens to product cost if the time to produce a unit is decreased to 25 minutes?

  Types of federal mediation and conciliation services

Suggest two types of federal mediation and conciliation services that could potentially aid health care unions in solving health care human resources issues

  Profit hospital to retain its tax exempt status

In order for a not for profit hospital to retain its tax exempt status it cannot do which of the following:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd