Should the company expand by purchasing the equipment

Assignment Help Other Subject
Reference no: EM131156601

The owner of a small printing company is considering the purchase of additional printing equipment to expand her business. If the owner expands the business and sales are high, projected profits (minus the cost of the equipment) should be $90,000; if sales are low, projected profits should be $40,000. If the equipment is not purchased, projected profits should be $70,000 if sales are high and $50,000 if sales are low.

1. Are there options other than the purchase of additional equipment that should be considered in making the decision to expand the business?

2. If the owner is optimistic about the company's future sales, should the company expand by purchasing the equipment?

3. Is the owner's optimism or pessimism about sales the only factor that may impact the company's profits?

4. The equipment to be purchased is known in the industry to have a useful life of five years. How might this impact the printing company?

Specifically, the following critical elements must be addressed:

I. Main Elements

II. Integration and Application

III. Analysis

IV. Critical Thinking

Reference no: EM131156601

Questions Cloud

What are the current setup social media : What are the current setup social media? What are business goal for socaial media?
Create a rough draft outline for your management action plan : You will create a rough draft outline for your management/leadership action plan. At a minimum, the sections of your plan will include Personal Leadership Statement.
Difference between descriptive analytics-predictive analytic : What is the difference between descriptive analytics, predictive analytics, and prescriptive analytics? Provide examples of each.
Obtain the heat capacity by numerical differentiation : Following a procedure analogous to that in Example 5.2, obtain an expression for the coefficient of thermal expansion based on the van der Waals equation of state. Use the result to calculate the value of β for oxygen at 20 °C, 30 bar.
Should the company expand by purchasing the equipment : If the owner is optimistic about the company's future sales, should the company expand by purchasing the equipment? Is the owner's optimism or pessimism about sales the only factor that may impact the company's profits
Discuss the impact that goals have had on your organization : Discuss the impact that goals have had on your organization. Were they effective? Were they communicated to you directly? If so by whom, if not, why not?
Different venues trying out different constructors : Represents Virginia points of interest Include the following characteristics: name of the place, location (address), short description of things to do (hiking, swimming, climbing, walking, etc.), and rating (1 through 5), food recommendation
Use the sequential method to allocate support costs : List the sequence that should be used to allocate the support department costs to production departments using the step-down method.
Discusses the four stages of the product life cycle : Discusses the four stages of the product life cycle. Think of a product/product category in the maturity stage that is poised to be reinvented. Explain fully using chapter material and/or outside research.

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd