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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.
The United Auto Workers union enters into contract negotiations with the Ford Motor Company in Michigan. What are the three main subject areas the UAW can negotiate with Ford? Prov
In detail, express your opinion regarding the "Comparable Worth" issue.
When it comes to team identity, what activities would you recommend to strengthen the team identity and, presumably, improve effectiveness of the team?
Must use Excel for solution Zip Games purchases blank 3.5-inch disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processi
You know that our average weekly sales are $2,500 and the flow time is half day. Surely with this information, you should have no problem maintaining an inventory level of $400 to
The actual demand of the patients at Omaha Emergency Medical clinic for the first six weeks of the year are as follows: week Actual # of patients 1 65 2 62 3 70 4 48 5 63 6
The Warehouse Company supplies spare parts for its two plants, Plant A and PlantB. Plant A and Plant B do not have any significant storage space. Hence you want carryminimum possib
all
Case Study: Social Media Policies, Concerted Activity and HR Management In the last few years, companies have begun initiating and implementing Social Media policies for their e
Explain why operational efficiency is so important to Net Income, Return on Capital and Income.
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