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How does optimization debunk the idea that profit is the consequence of a simple rise in the interplay between cost and revenue?
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- What is optimization? How does it blow up the myth about profit being a result of a mere increase-decrease interplay between cost and revenue? How much should a firm sell a particular product in order to maximize profit? What factor does it have to consider in arriving at this decision?Explain the process of using linear programming to make crashing decision?George Zegoyan and Amir Gupta face a difficult decision. Their private auto parts manufacturing company has been a great success - too quickly. They cannon keep up with the demand for their product. They must expand their facilities, but have not had time to accumulate sufficient working capital, nor do they want to acquire long-term debt to finance the expansion. Discussions with there accountants, lawyers, and stockbrokers have confronted them with the necessity of going public to raise the required capital. Zegoyan and Gupta are concerned about maintaining control if they become a public company. They are also worried about loss of privacy because of the required reporting to various regulatory bodies and their their shareholders. Naturally, they are also pleased that the process will enable them to sell some of their shareholdings to the public and realize a faiir profit from their past and expected future successes. They will be able to sell 40 percent of the shares for…
- Explain what are various types of information for decisions making does simulation typically provide?Which of the following scenarios accurately reflects the meaning of the profit leverage effect? Group of answer choices With a 7.6% profit margin, decreasing your cost of goods sold (COGS) by $10,000 increases your pre-tax profits by $10,000, but increasing your sales by $10,000 only increases your pre-tax profits by $760. When operating with a 7.6% profit margin, your cost of goods sold will be $10,000 as long as your sales exceed $10,000. With a 7.6% profit margin, every additional $10,000 in sales increases your pre-tax profits by $10,000, while every $10,000 saved in purchasing increases your pre-tax profits by just $760. If your profit margin is 7.6%, every $10,000 saved in purchasing lowers your COGS sold by $760.Think of a company you are familiar with. Describe at leastthree problems the company faces that could be addressed, atleast in part, through optimization. The problems can be eitherstrategic or operational in nature.
- The concept of ‘Profit maximization’ means a. increasing the firm’s net income as much as possible b. increasing the firm’s liabilities as much as possible c. increasing the firm’s expenses as much as possible d. increasing the firm’s loans as much as possible1. What is the difference between a level and a chase strategy? What are some advantages and disadvantages of each? Which do you believe is a better method?Rollin King and Herb Kelleher started Southwest Airlines in 1971 with this idea: if they could take airline passengers where they want to go, on time, at the lowest possible price, and have a good time while doing it, people would love to fly their airline. The result? No other airline in the industry's history has enjoyed the customer loyalty and extended profitability for which Southwest is now famous. The company now flies more than 3,400 times each day to over 64 destinations across the United States There's more to the story, however, than making promises and hoping to fulfill them. A large part of Southwest Airlines' success lies in its ability to plan long-term capacity to better match demand, as also improving the utilization of its fleet by turning around an aircraft at the gate faster than its competitors. Capacity at Southwest is measured in seat miles, and even a single minute reduction in aircraft turnaround time system wide means addi tional seat-miles being added to…
- Identify two key strategic decisions made by your current team, department, or organization. How could those decisions have been enhanced by optimization models? Support your rationale with evidence from readings or external research.As a student, Maud Abigail Regina (MAR) would say to herself' Set a goal so big that you can't achieve it until you grow into the person who can'. To this end MAR was able to save GHS 5,000.00 as a student at the Earth Science Department during her studies. She had a Second Class Hons Degree in the Upper Division and she was determined to be a successful entrepreneur after graduation. MAR now owns an GHS 800,000.00 business that employs six people. The facility is a custom picture- framing and her customers are mainly granduants from tertiary and allied institutions and students/staff from second cycle institutions during speech/prize giving days. MAR has been taught that people are willing to take the risk of starting a business for many reasons, including profit, independence, challenge and opportunity. MAR recognized the opportunity in picture framing since most framing camera men at functions at the time did not focus on modem management principles. MAR maintains that most…Is the following statement correct? Vertical integration is the process of a company expanding its operations either backward into an industry that produces inputs for the company’s products, such as raw materials or product components. For example, producing car batteries is an input of the automotive industry but can also be integrated vertically. Vertical integration can also be done forward into an industry that uses, distributes, or sells the company's products and it moves to the final delivery of the product to the customer. The parallel shifts from car ownership to the mobility of demands change the automotive industry. Car manufacturers test different business models, such as car sharing, in order to morph into mobility providers which is a typical forward integration strategy. Please choose an answer: True Not correct