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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.
Intervention - Types of Managerial Tactic This is where a manager is delegated authority to implement change. Current performance is measured against a standard which illustra
What is the best alernative course of action?
Define Trade Unions Act 1926. Trade Unions Act 1926 provides that any seven workers may form a union.
George kyparsis determines his cost to be as follow
Your company wants to increase revenues from its existing customers. How can data mining be used to accomplish his objective?
McDonald's Corporation, the world's largest fast-food restaurant chain, with 2010 revenues of $24 billion,has recently been on a "roll." Its shareholder value has more than doubled
a firm isconsidering replacement of a machien, whoes cost price is rs 12200 and scrap value is rs 200 the running cost is rupee given below year running cost 1 200 2 50
If you can think of a business plan to enhance to online education programs at school?
Location Strategy It is difficult to set down rules whereby the problem of facilities location can be programmed but there are a number of factors which should be c
Marie wrote Ray a check for landscaping her front lawn. Marie paid Ray in advance. The check was dated for five days later than the date of issuance. Ray was supposed to start land
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