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Vera source Microprocessor Corporation (VMC) sells 2000 specialized computer processing chips each month at a price of $1,500 each. Variable costs amount to $1,500,000, and fixed costs are $500,000. Currently the company has a defect rate of 8 percent (which are chips returned by customers, scrapped by VMC, and replaced). Note that the variable costs include the cost of producing the defective chips. a. What is the hidden cost to the company of making this rate of defectives instead of 2000 good chips each month? b. Suppose a Six Sigma effort can reduce the defects to a six sigma level (assume for simplicity that the defective rate is essentially zero). What is the impact on profitability?
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The damage (to cigarette makers) is generally under control." Illustrate what action do you suppose the cigarette companies took to avoid bankruptcy.
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Suppose your firm produces electricity by burning coal. Currently it buys central Appalachia 12,500 BTU per ton coal at the market price of $52 per ton.
What are the steps required to implement a firm’s human rights responsibilities?
Explain how can multiplier have a -ve effect. What is the relationship among the multiplier as well as the marginal propensities.
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