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a. How can break-even analysis be used in selecting a new plant site?
b. What are potential advantages and disadvantage of locating a production facility in foreign country instead of using domestic location?
c. A company that produces pleasure boats has decided to expand one of its line. Current facilities are insufficient to handle the increased workload, so company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable cost: fixed cost would be $250,000 per year, and variable costs would be $500 per boat. Subcontracting would involve a cost per boat of $2,500 and expansion would require an annual fixed cost of $50,000 and variable cost of $1,000 per boat.
i. Find the range of output for each alternative that would yield the lowest total cost
ii. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats?
iii. What other factors might be considered in choosing between expansions and subcontracting?
Question 3 25 marks Your employer, Quick Hit Agency (QHA), is a debt collections agency. The company specializes in collecting small accounts. QHA does not deal in large accounts
Agency revenues. An economic consultant was retained by a large employment agency in a metropolitan area to develop a regression model for predicting monthly agency revenues ( y ).
Replacement times for CD players are normally distributed with a mean of 7.1 years and standard deviation of 1.4years. Find the probability that a randomly selected CD player will
discuss the mathematical test of adequacy of index number of formulae. prove algebraically that the laspeyre, paasche and fisher price index formulae satisfies this test. What is
Consider the sample of 60 package design ratings given in the table below. A Sample of Package Design Ratings (Composite S
Meaning of Interpolation and Extrapolation Interpolation is a method of estimating the most probable missing figure on the basis of given data under certain assumptions. On t
simplified formulae
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history of north west corner method
the two regrassion line will pass through the point (x,y)
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