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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.
As a library or internet assignment, find the U.S. productivity rate (increase) last year for (a) national economy, (b) manufacturing sector, and (c) service sector.
Protocols are important in medicine. We use them anytime that a particularly important process needs to be completed in a sequential way for the benefit of our patients. What is yo
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Do you feel it's unethical for advertisers to pitch products to patients and students in this fashion? why?
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Describe the categories of problems that have been found to be approached by Six Sigma methodology Type your question here
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