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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?
For calculating the mode of the grouped data graphically, the following procedure is adopted. Draw a histogram of the data; the modal class is the tallest rectangle.
Significance of Correlation The study of correlation is of immense use in practical life. Correlation analysis contributes to the understanding of economic behavior, aids in lo
Question: (a) A normal distribution is thought to have a mean of 50. A random sample of 100 gave a mean of 52.6 and a standard deviation of 14.5. A significance test was carri
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