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Superior Products Inc. is considering two potential equipment alternatives for production of their best selling product line. Option 1 involves proven equipment: Fixed cost investment of $800,000 Variable cost of $45/unit. Option 2 involves developmental technology: Fixed cost investment of $1,200,000 Variable cost of $30/unit. 1. The marketing department has made the following sales estimates: Favorable: 40,000 units sold at $80/unit with a 60% probability. Unfavorable: 15,000 units sold at $80/unit with a 40% probability. Draw a decision tree and calculate the Expected Monetary Value (EMV). Which Option would you recommend based on this decision tree analysis? Please show work. 2.The Finance Division agrees with the sales estimates of the Marketing Division. However, Finance would like some sensitivity analysis include by using the following probabilities: Favorable: 40,000 units sold at $80/unit with a 30% probability. Unfavorable: 15, 000 units sold at $80/unit with a 70% probability. Do not redraw the Decision Tree. Would these new probabilities change your recommendation? Why or Why not? Please show your work.
I borrowed the book of cost accounting and brought the answer of the questions about three months ago. You charge me $15.94 for the answers per month. Now, I have returned the book
Write a 750-1,000-word paper that analyzes the two leadership case studies, "Coach Knight: A Will to Win" and "Coach K: A Matter of the Heart." Address the following questions an
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Assume you work for a small firm that developed a better and faster operating system for netbooks than Microsoft Windows. What strategy might the firm use to unseat Windows in this
1. The average annual investment cost of a workstation in New Jersey has been calculated to be $100,000. It has been calculated to be $150,000 in Kentucky. The hourly cost at a
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Production Control After planning the next managerial production function is to control the production according to the production plans because production plans cannot be acti
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