Suppose that a security costs $3,000 today and pays off some amount bin one year. Suppose that b is uncertain according to the following table of probabilities: a Calculate the return (in percent) for each value of b. (Note:You may just calculate the total return and not worry about how this is split between current…
Read MoreMexico Taiwan Canada Hourly wage rate $1.50 $3.00 $6.00 Output per person 10 18 20 Fixed overhead cost $1,50,000 $90,000 $1,10,000 1. Given these figures, is the firm currently allocating its production resources optimally? If not, what should it do and why? Show all your calculations. 2. Suppose the firm wants to consolidate all…
Read MoreFrom the case study, suggest short-term recommendations for the set of six jobs at the company. Support your recommendations. •From the case study, evaluate the efficiency of Balloons Aloha’s sequencing system. Provide long-term recommendations with respect to sequencing jobs at the company. Support your recommendations. PART 2 PLEASE COMMENT TO THIS DISCUSSION NO LESS THE…
Read MoreBoston Electric Generators has been getting many complaints from its major customer, Home Station, about the quality of its shipments of home generators. Daniel Shimshak, the plant manager, is alarmed that a customer is providing him with the only information the company has on shipment quality. He decides to collect information on defective shipments through…
Read MoreThe XYZ Paint Shop owns and operates a dozen shops in southern Iowa. Their signature paint is black epoxy. Sales (X, in millions of dollars) is related to Profits (Y, in hundreds of thousands of dollars) by the regression equation Y = 6.321 + 0.65X. What is your forecast of profit for a store with…
Read MoreSuppose a firm in Toronto has two markets with the following demand curve for each market, P1=100 − Q and P2=$60, and the marginal cost of this firm is MC=2Q. Discuss the best pricing policy for this firm to maximize its profit. It can follow price discrimination if resale between markets is assumed impossible. This…
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