Ski Free Inc case

On Monday evenings in April 2015, each episode of WWE Entertainment was typically watched by 3.8 million viewers, while each episode of American Dad was typically watched by 1.5 million viewers.† Your marketing services firm has been hired to promote Gauss Jordan sneakers by buying at least 30 commercial spots during episodes of WWE Entertainment and American Dad. You have been quoted a price of $4,000 per spot for WWE Entertainment and $1,000 per spot for American Dad. Gauss Jordan, Inc.'s advertising budget for TV commercials is $130,000, and it would like at least 75% of the total number of spots to appear on WWE Entertainment. How many spots should you purchase on each show to maximize exposure? HINT [Calculate exposure as Number of ads ✕ Number of viewers.] (If an answer does not exist, enter DNE.)     WWE ______ Spots  American Dad _______ spots

In the context of this course, you will be asked to address the issues/questions below for The Coca-Cola Company (KO) When addressing the issues/questions, be sure to do so in the context of this course and KO. You have been appointed as the special assistant to the Chief Executive Officer, James Quincy who has asked you to address the following two situations:           KO currently buys most of its production equipment from a manufacturer in China. A representative from a company in Malaysia is offering to sell the equipment for 20% less than the cost from the manufacturer in China. Discuss the issues that you would consider in deciding whether to accept this offer. Mr. Quincy wishes to develop an incentive plan for the production facilities managers. Before the plan is implemented, he wishes you to make sure that budgeting in the stores is done correctly. He has asked you to submit a document, which discusses the key points related to budgeting that you have learned in MBA 640. Be…

Your answer is partially correct. An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $5,200 and it will cost $1,300 per year to operate at the end of year that follows. She will keep the vehicle for 5 years; at the end of this period, the upgraded vehicle will have a salvage value of $3,800. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $9,800 and that there will be $4,100 due at lease signing. She further estimates that it will cost $2,900 per year to lease and operate the vehicle. The independent contractor's MARR is 11%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. 1943.56 EUAC(keep): $…

Bruin Properties is in escrow to buy a 175,000 square foot shopping center in Camarillo, California for $35,000,000. Bruin Properties can borrow $24,000,000 fixed rate fully amortizing over 30 years at a 6.0% annual interest rate with equal monthly payments of principal and interest or it can borrow $28,000,000 fixed rate fully amortizing over 30 years at a 7.0% annual interest rate with equal monthly payments of principal and interest. What is the incremental annual borrowing cost for the additional $4,000,000 loan amount if each loan would be outstanding for the full 30 year term? a.13.0% b.12.4% c.11.5% d. 7.0%

LPM Corp. produces and sells two types of frozen burgers, Turkey Burgers and Veggie Burgers. In the most recent month, the firm sold 12,000 Turkey Burgers and 8,000 Veggie Burgers. Turkey Burgers sold for $14.00 per box and variable costs were $7.40 per box. The Veggie Burgers sold for $16.00 per box and variable costs were $8.25 per box. The fixed expenses of the entire company were $41,160. If the sales mix were to shift toward the Turkey Burgers product line with total sales volume remaining constant at 20,000, the overall break-even point for the entire company:

Any Company buys and resells a wide range of personal care products. Their ongoing challenges, like many of their competitors include shipping time for purchases, optimizing use of their storage space, and shipping time for sales to their customers.   The company’s control over shipping time for purchases is limited. Their choice of suppliers has more impact on shipping time than any encouragement they can offer to those suppliers. Any Company uses multiple warehouses. Some are owned by the company, others are leased. The company uses contract shippers, FedEx/UPS, and the US Postal Service.   Your task is to identify at least 4 KPIs you think will be relevant for Any Company to understand and improve their inventory management. Identify the data necessary for your KPIs as specifically as possible. You may use any KPIs we have mentioned in class or from the labs. Feel free to use others or to create your own. Your response does not need to include a description of graphs you might…

ABC Corporation has recently given out a nine-month contract to a construction subcontractor. At the end of the first month, it becomes obvious that the subcontractor is not reporting costs according to an appropriate WBS level. ABC Corporation asks the subcontractor to change its cost reporting procedures. The subcontractor states that this cannot be done without additional funding. This problem has occurred with other subcontractors as well. What can ABC Corporation do about this?

You are the manager of GearNet and must decide how many Internet hubs to produce to maximize your firm’s profit. GearNet and its only rival (NetWorks) sell dual-speed Internet hubs that are identical from consumers’ perspectives. The market price for hubs depends on the total quantity produced by the two firms. A survey reveals that the market price of the hubs depends on total market output as follows: Combined Hub Production of GearNet and NetWorks Market Price of Hubs (per unit) 500 units $120 750 units $100 1,000 units $90 GearNet and NetWorks each use labor, materials, and machines to produce output. GearNet purchases labor and materials on an as-needed basis; its machines were purchased three years ago and are being depreciated according to the straight-line method. GearNet’s accounting department has provided the following data about its unit production costs:   Item GearNet’s Unit Cost for an Output of:                      250 units…

You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows: where  is the quantity of cowpea demanded in bags per month,  is the average price of cowpea in Ghana Cedis,  is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50 Required: Find the resulting demand function for cowpea and determine the number of bags Zuku can sell at GH¢ 45.00 per bag.   Management is considering increasing price of cowpea by GH¢10.00 per bag. Advise management on this price change using the concept of price elasticity of demand. Explain why management should be worried about a reduction in the price of groundnut

GreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low-cost extra service option, which it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of $4 (in thousands)is available for this promotional campaign. Based on- past experience in promoting its other services, GreenLawns has obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media: S-2R2-12M2-9RM + 20R +37M, Where S = total sales R = amount spent on radio advertising M = amount spent on direct-mail advertising GreenLawns would like to develop a promotional strategy that will lead to maximum sales subject to the restriction provided by the media budget. The problem is formulated as below: Max -2R2-12M²-9RM+20R+37M s.t. 1R+1M=0 Using Excel Solver, solve the above nonlinear optimization model. (a) What…

Sales   The Marketing Club at your college has decided to raise funds by selling three types of T-shirt: one with a single-color "ordinary" design, one with a two-color "fancy" design, and one with a three-color "very fancy" design. The club feels that it can sell up to 320 T-shirts. "Ordinary" T-shirts will cost the club $6 each, "fancy" T-shirts $8 each, and "very fancy" T-shirts $10 each, and the club has a total purchasing budget of $3,200. It will sell "ordinary" T-shirts at a profit of $2 each, "fancy" T-shirts at a profit of $5 each, and "very fancy" T-shirts at a profit of $2 each. How many of each kind of T-shirt should the club order to maximize profit? "ordinary" T-shirt(s)"fancy" T-shirt(s)"very fancy" T-shirt(s) What is the maximum profit the club can make?

The Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)

Management of the Toys R4U Company needs to decide whether to introduce a certain new novelty toy for the upcoming Christmas season, after which it would be discontinued. The total cost required to produce and market this toy would be $500,000 plus $15 per toy produced. The company would receive revenue of $35 for each toy sold. Assuming that every unit of this toy that is produced is sold, write an expression for the profit in terms of the number produced and sold. Then find the break-even point that this number must exceed to make it worthwhile to introduce this toy. Now assume that the number that can be sold might be less than the number produced. Write an expression for the profit in terms of these two numbers. Formulate a spreadsheet that will give the profit in part b for any values of the two numbers. Write a mathematical expression for the constraint that the number produced should not exceed the number that can be sold.

Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery because maintenance costs for the previous fiscal year were higher than he expected. The owner has asked you to assist in estimating future maintenance costs to better predict the firm’s profitability. Together, you have determined that the best cost driver for maintenance costs is machine hours. The data from the previous fiscal year for maintenance costs and machine hours follow:     Maintenance Costs Machine Hours 1 $ 2,660 1,557 2 2,705 1,660 3 2,755 1,675 4 2,855 1,725 5 2,890 1,845 6 3,040 1,895 7 2,900 1,855 8 2,940 1,875 9 2,815 1,765 10 2,605 1,445 11 2,625 1,620 12 2,925 1,460 Maintenance cost = 1208 + (0.9667 x Machine hours) 1. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed above.

Your boss would like your help on a marketing research project he is conducting on the relationship between the price of juice and the quantity of juice supplied. He hands you the following document: Price of Juice Quantity of Juice Supplied (Dollars per can) (Billions of cans) 0.50 750 0.75 1,000 1.00 1,500 1.25 2,000 Your task is to take this and construct a graphical representation of the data. In doing so, you determine that as the price of juice rises, the quantity of juice supplied increases. This confirms the

Best Buy is the largest consumer electronics retailer in the USA, with 2015 sales of over $50 billion. The company competes aggressively on price with such rivals as Costco, Sam's Club, Walmart, and target, but it is also known by consumers for its first-rate customer service. Best Buy consumers have commented that the retailer' sales staff is exceptionally knowledgeable about the company's products and can direct them to the exact location of difficult-to-find items. Best Buy customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech support and installation services are additional customer service features that are valued by many customers. How would you characterize Best Buy's competitive strategy? Should it be classified as a low-cost provider strategy? A Differentiation strategy? A best-cost strategy? Explain your answer.

Nearly 50 firms make pencils and pens in the United States. We R' Write is one of those firms. These firms range from large companies such as Bic, Paper Mate, and Pilot to generic-brand pencils and pens. There are also higher-end pens and pencils produced by firms such as Montblanc and Cross. We R' Write would like to determine how they can better compete against the other firms in the market. For this question, address the following: What is the market structure for the pen and pencil market in the United States? What characteristics of the pen and pencil market help you draw your conclusion? Given the market structure, how can We R' Write better compete against other firms in the market? At an industry trade show this past December, We R' Write management heard rumors that the three largest pen manufacturers in the United States are considering a merger. If this merger takes place, the new company will potentially control 62% of the total market share of pen sales. Could the federal…

Intercontinental hotel has over 200 hotels in 75 countries. Intercontinental is known for its luxurious rooms and buildings and for the high quality of its staff training. The hotels are not the standardized, but they reflect local styles and circumstances. For example, the Intercontinental in Lusaka, Zambia has a dinning room which is open to the gardens and swimming pool on one side so the guests effectively eat in the open air. This would obviously be impossible in a colder climate, but guests enjoy the tropical atmosphere and the hotel is often used for business meetings as a result. Intercontinental provides up-market accommodation for international travelers. The bulk of the guests are business people so the hotels provide excellent business facilities, including meeting rooms, conference centers, secretarial services, fax machines, internet facilities and a concierge desk. For people staying at these hotels, cost is very much less important than the level of service comfort. A…