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Easton Corporation makes two different boat anchors--a traditional fishing anchor and a high-end yacht anchor--using the same production machinery. The contribution margin of the yacht anchor is three times as high as that of the other product. The company is currently operating at full capacity and has been doing so for nearly two years. Bjorn Borg, the company's CEO, wants to cut back on production of the fishing anchor so that the company can make more yacht anchors. He says that this is a "no-brainer" because the contribution margin of the yacht anchor is so much higher. Instructions Write a short memo to Bjorn Borg describing the analysis that the company should do before it makes this decision and any other considerations that would affect the decision.
Identify at least one area of consideration that new businesses face when beginning operations. Describe the obstacle. Explain how organizations can overcome the obstacle. Conclude how an organization can become profitable quickly and why it is impor..
The globalization, or internationalization, of the marketplace has become one of the defining events of our time. The pressure to produce a good or service while controlling costs and maintaining quality has profoundly affected the manufacture, d..
What batch size would you choose in order to minimize the inventory without reducing the process capacity? Assuming that all units of a batch have to be processed before they can move to the next step.
A pharmaceutical manufacturer actively monitors all products produced to verify their ingredients fall within rigid control ranges that ensure product effectiveness. This monitoring allows them to make adjustments should they see negative trends o..
After a number of complaints about its directory assistance, a telephone company examined samples of calls to determine the frequency of wrong numbers given to callers
What are some of the lessons T. Sowell wishes us to learn regarding the examples of Toyota, McDonalds, and Howard Johnson? Explain their successes and/or mistakes, as well as those of some of their business competitors.
From the e-Activity, determine two (2) other costs that BP might have incurred. Give your opinion as to whether or not BP would have been better off had the company taken the necessary precautions to prevent or minimize an oil spill.
Briefly describe the terms operations management and supply chain.
What does Hardin mean by “It is one of the peculiarities of the warfare between reform and the status quo that it is thoughtlessly governed by a double standard.”? What is the “double standard” and what implication does this have on the political eco..
Identify a product that is a commodity and discuss how you might: a) survive as a commodity in an industry characterized by me-too products, overcapacity, and frequent price cuts, and b) add value to the product to prevent it from becoming a commodit..
The forecast requirements for an electric hand drill for the next 6 weeks are 15,40,10,20,50,and 30 units. The marketing department has booked orders totaling 20, 25, 10 and 20 units for delivery in the first.
In what kind of industries does a localization strategy makes sense? Why? When does a global standardization strategy make most sense? Why? What do you see as the main organizational problems that are likely to be associated with implementation of a ..
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