What costs and irreducibles relevant to your decision making

Reference no: EM131003125

You had great intentions last January when you pur- chased a $450 piece of ?tness equipment. However, your use averages only one time per week. It is December, and you can sell it for $300 (to someone with a New Year's resolution) and rely on the university gym until you graduate at the end of the semester. If you sell it in May, you will only get $100. If you keep it, you'll have to pay $25 to move it to the city of your new job (where you interned last summer). There is no convenient gym at the new location. What costs and irreducibles are relevant to your decision making? What decision do you recommend?

Reference no: EM131003125

Questions Cloud

What is probability that price of stock two will change : What is the probability that the price of stock 1 will not increase in the coming week? What is the probability that the price of stock 2 will change in the coming week?

What was the amount of those contributions : Assuming cash contributions were made at the end of the year, what was the amount of those contributions?

Summarize and analyze an example from the news : Economic development and redevelopment often re- quire signi?cant acreage that is assembled by acquir- ing smaller parcels. Sometimes this is done through simple purchase, but the property of an "unwilling seller" can be acquired through the proce..

How visually appealing and organized is the site : Describe the contact information and various communication methods that are available to a customer who needs to contact a representative, inquire about a product, or make a purchase.

What costs and irreducibles relevant to your decision making : If you sell it in May, you will only get $100. If you keep it, you'll have to pay $25 to move it to the city of your new job (where you interned last summer). There is no convenient gym at the new location. What costs and irre..

Research items that are available to you : Save your assignment as a Microsoft Word document. (Mac users, please remember to append the ".docx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignm..

What matters is the marginal cost for another unit : The lower productivity of overtime hours decreases output to 57 per hour (= 60 X .95). Thus, producing 60 takes 1.053 hours, which is the inverse of .95. Thus, the direct labor cost for overtime units is 43.4¢ (= $13.85 X 1.5 X 1.19 X 1.053/60).

Determine the optimal demand for the microprocessor chips : A company manufactures smartphone microprocessors whose cost function is given by C=6X+9, where X is the number of microprocessor chips. The selling price per unit is P=30-3X and maximum output of the plant is 30,000 units per month. Determine the op..

Determine optimal decision strategy company should adopt : Draw to scale an ogive of the data represented by the above graph and use it to obtain estimates of the 70th percentile and the mid 75% range - What percentage of the pins will be acceptable to the customer?

User Account

All Pages