Juice company is producing a new product line the annual

Assignment Help Business Management

Reference no: EM13365264

Juice Company is producing a new product line. The annual demand has the following probability distribution:

Annual Demand Probability
20,000 0.3
50,000 0.5
90,000 0.2

Each case of Juice sells for $5 and incurs a $3 Variable cost. it costs the company $800000 to build factory to produce this new Juice. Assume that $1 received every year forever is equivalent to receiving $10 now. Needs to read in Net present Value. Company needs to know whether to build the factory based on a pay off table and the following results:

a) Maximin and Maximax results
b) Minimax regret
c) Expected Value
d) Hurwicz (use 0.6)
d) Calculate Perfect Information

Reference no: EM13365264

Questions Cloud

1 a deep in-the-money call option on futures is exercised : 1. a deep in-the-money call option on futures is exercised early becausea.the intrinsic value is maximizedb.it behaves

Benefits and disadvantages using cookies to : benefits and disadvantages using cookies to companycustomerwhat are the benefits to a company that uses cookies to

Question about strategy managementexplain and support five : question about strategy managementexplain and support five forces?what is the company strength weaknesses opportunity

An organizational behavior moment friend or associateis : an organizational behavior moment friend or associate?is tony savable? do the benefits outweigh the costs of trying to

Juice company is producing a new product line the annual : juice company is producing a new product line. the annual demand has the following probability distributionannual

Sample code of conduct for a brewery companybusiness is a : sample code of conduct for a brewery companybusiness is a beer brewery and distributor.write a basic code of conduct

Characteristics of high-performance workplacesdefined : characteristics of high-performance workplacesdefined business goals and objectivesmanagement support and

1 what are the roles and responsibilities of each : 1 what are the roles and responsibilities of each department in a lodging facility as it applies to guest services?

What are some of the real problems that may underlie : what are some of the real problems that may underlie employee resistance to change?employee resistance to

User Account

All Pages