Costs and Labor

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

So, to summarize with all the information given, Company A should always strive to have their marginal cost be equal to their marginal cost in order to maximize profit. If they see that their marginal revenue is higher than the marginal cost then more output needs to be produced to get their max profit. In contract, if the marginal cost if higher than the marginal revenue then output needs to

the stock is a call option on the firm's assets, and risky projects decrease the volatility of those assets.

a) (2 pts.) Which strategy offers both Westinghouse and General Electric the best financial outcome?

a) In order to meet the increase in scope, the project manager will increase costs and/or schedule increase. The triple constraints should always be balanced.

B. The firm would stand to gain much additional revenue if its competitors did not follow suit by raising their prices.

* Least expensive of the three strategies due to the lack of excess inventory and employee overtime

14) Consider the following transshipment problem. The shipping cost per unit between nodes 1 and 2 is $10, while the shipping cost per unit between nodes 2 and 3 is $12. What is the objective function?

7. Which of the following must be true if a firm is experiencing economies of scale?

B) if the right-hand side value of the constraint increases by 1 unit, the objective function value will decrease by 5 units

In scenario C, we incur losses for every demand met. Comparing P and D, the difference lies in the location of the factory (assuming we serve Fardo customers). Hence, factory investment of $500,000 must see more than 3,334 drums given savings of $150 per drum. Therefore, we should build a factory and thus a warehouse in Fardo.

D. Massive savings glut in the corporate sector, the globalization of manufacturing networks are major challenges faced by China

a. Focusing solely on marketing in an industry that is undergoing rapid change could be extremely costly in the long run.

d) The opportunity cost should be calculated as the resource cost of producing the input.

Do you think that this firm should cut its price to increase its market share? Explain.