Managerial Decision Modeling Essay

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

Decision making is defined as "the cognitive process leading to the selection of a course of action among alternatives" (Decision Making, 2006, para. 1). Decisions are made continually throughout our day.

effective cost of { [ (1 + .15/365)^365 ] - 1 } * 100 = 16.18% per year.

13. What is the formula for the Present Value (PV) for a finite stream of cash flows (1 per year) that lasts for 10 years?

Given that the total profit over 8 years is $1.2375B (or $155M per year for 8 years), we will now compute the Present Value of this amount using the following formula:

4) The purpose of the committee is to find the best possible solution to tackle the financial crises faced by the university. However, it is not something that is guaranteed to be accepted by the President. The president will consider the report of the committee as the solution to the financial crises but the president does have the power to override, make suggestions or modify the solution as he see fits. It was wise to appoint her assistants as the vice provosts, to the task force to ensure that the president had easy access to information and minutes of the meetings. While the intent is to lower the cost of fringe benefits, the president does not want to

* Sample: The sample is limited to a small proportion of working professionals in Western Sydney and may not accurately reflect the population of working professionals.

3) Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?

Using the data provided in Exhibit 1, we can get free cash flow of year 2007-2011 would be $21.24 million, $26.73 million, $22.10 million, $25.47 million, and $29.54 million respectively. The computation is showed in Exhibit 1($ in thousands).

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

The product my business has chose to produce is water bottles. After some research it can be said that the typical production cost of one water bottle unit is $20. Total fixed costs for my company including rent and utilities are $4000 per month. Given these numbers a linear cost function for my product can be constructed; C(x) = 20x + 4000. In this equation x represents water bottles produced each month at a price of $20 along with $4000 of total fixed costs. An estimated total cost per month can then be determined of $120,000 looking at what the company can afford. Using the cost function C(x), we can plug in 120,000 to then determine the number of water bottles produced each month, which will be x. The beginning equation is C(120000) = 20x + 4000, begin by subtracting 4000 from each side leaving us with 116000 = 20x then divide both sides of the equation by 20 to get a final answer of x = 5800. This is the number of bottles produced each month.

Managers are constantly faced with critical decisions that will heavily impact on the company’s competitive ability and profitability. This report will analyse the critical decisions made in the case study The Change Story of Yellow Auto Company from a sociologic decision making perspective. The case study presents four main decisions which are: increase of market share, change in decision management style, clarify job description and invest greater time and money in human resources. The analysis of these decisions centres on the relationships between employees and managers and the

We have to think about the qualitative factors that are involved in our decision making too. In the decision making process, as we saw in a case called The Nancy M. Hohman, we saw that many times the numbers will not speak louder than our personal preferences. The Nancy M. Hohman was a less than one year old ship, worthy US$ 40 million, carrying 200,000 tons of crude oil and 28 crew members and had an engine malfunction 9 miles way off the coast of South Africa. However, Port Elizabeth (the nearest one) was too small for the ship and the next close one was 380 miles away.

Scenario 1 which resembles the steady state has a nominal cash flow of 2.5 million. The NPV of scenario 1 is 118,245.21 with an IRR of 8.59%. In scenario 2 the expected cash flow is (2,500,000*1.3) with an NPV of 2,202,737.72 and IRR 16.44%. Scenario 3 has an expected cash flow of (2,500,000*0.85) with an NPV of -960,507.80 and IRR of 4.25%. Taking the three scenarios into account, an expected value of NPV that incorporates the probabilities of each scenario needs to be considered.

Managing a business involves making decision within various aspects of the company, such as finance, R &D, marketing, and production. Each of these decision is critical to both the long-term, and short term success of the company. As team Erie learned in the Capsim simulator, one of the most challenging times in an organization, is often at the creation and management of a new product that has been introduced into the marketplace.