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Question:
You are an analyst for a sporting goods corporation that is considering a new project which will take advantage of excess capacity in a existing plant. The plant has a capacity to produce 50000 tennis racquets, but only 25000 are being produced currently though sales of the rackets are increasing 10% a year. You want to use some of the remaining capacity to manufacture 20000 squash rackets each year for the next ten years (which will use up 40% of the total capacity), and this market is assumed to be stable (no growth). An average tennis racquet sells for $100 and costs $40 to make. The tax rate for the corporation is 40% and the discount rate is 10%. Is there an opportunity cost involved?
If you are a director of HR department in the Ford motor company, now the Ford company want to start Cuba markets, let you to handle operation and provid report for Summary slide /Recommendation/Anticipated costs to enter Cuba Country.
Potentially increase demand?
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Per Norstrom supplies computer systems to a warehouse in Rotterdam. He sells 16 systems a week. The cost of an average system is $5,000, while order administration costs and delivery from Malaysia cost $1000. The lead time is around 4 weeks and ho..
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