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Peter Belington Stereo, Inc. supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lover due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Given the following costs-
Dallas Detroit
Fixed Costs $600,000 $800,000
Variable Costs$28/radio $22/radio
A. Perform an analysis of the volume over which each location is preferable.
B. How does your answer change if Dalla's fixed costs increase by 10%?
AirJet Best Parts, Inc. is concerned regarding recent changes in its stock prices for the company and would like to determine the stock prices for key competitors. Key competitors
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A firm that operates 300 days in a year and uses a level material usage approach has collected the following data: Annual Demand = 30,000; Daily Demand = 100; Daily production= 300
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Type two savings are the least likely to occur when applying Six Sigma principles to health care organizations
Should National-Brand Manufacturers Also Supply Private Label Brands? Take a position: Manufacturers should feel free to sell private labels as a source of revenue versus nation
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