EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Textbook Question
Chapter 5.S, Problem 15P
Give this payoff table:
a. Determine the range of P(1) for which each alternative would be best, treating the payoffs as profits.
b. Answer part a treating the payoffs as costs.
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(a)Based on the payback period, which alternative is preferred?
(b)Based on future worth analysis, which of the four alternatives is preferred at 5% interest?
(c)Based on future worth analysis, which alternative is preferred at 20% interest?
(d)At 10% interest, what is the benefit–cost ratio for Alt. G?
ro forma income statement. Given the income statement
, for California Cement Company for 2013 and an expected sales growth rate of
6.67%
for 2014, prepare a pro forma income statement for 2014.
First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.)
California Cement Company
Income Statement for 2013
Sales revenue
$
22,869,000
Cost of goods sold
$
-11,637,000
Selling, general, and administrative expenses
$
-3,993,000
Depreciation expenses
$
-1,331,000
EBIT
$
5,908,000
Interest expense
$
-175,000
Taxable income
$
5,733,000
Taxes
$
-2,512,462
Net income
$
3,220,538
What is the sales forecast for 2014? (Round to the nearest dollar.)
The pro forma income statement for 2014 is: (Round to the nearest dollar.)
California Cement Company
Pro Forma Income Statement for 2014
Sales revenue
$ ?
100.00%
Cost of goods sold
$ ?
50.885 %…
per board and fixed costs of $300,000. Determine:
The number of skateboards required to sell to breakeven.
The profit if they have been selling about 8,000 pr year.
a) Now, they are considering undertaking an advertising program with GBC
Promotions that would cost $150,000 (additional fixed cost) and increasing
the price by $160 to $400. Find the number of skateboards required to sell
at $400 and make the same amount of profit as in part “b”.
b) What is the % sales decline that can occur in c, to make the same profit as
before
Chapter 5 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 5.8 - Explain the meaning of the phrase Hours versus...Ch. 5.8 - Prob. 1.2RQCh. 5.8 - Prob. 1.3RQCh. 5.8 - Prob. 1.4RQCh. 5.8 - Prob. 1.5RQCh. 5.S - Prob. 1DRQCh. 5.S - Prob. 2DRQCh. 5.S - Explain the term bounded rationality.Ch. 5.S - Prob. 4DRQCh. 5.S - Prob. 5DRQ
Ch. 5.S - What information is contained in a payoff table?Ch. 5.S - Prob. 7DRQCh. 5.S - Prob. 8DRQCh. 5.S - Under what circumstances is expected monetary...Ch. 5.S - Explain or define each of these terms: a. Laplace...Ch. 5.S - Prob. 11DRQCh. 5.S - Prob. 12DRQCh. 5.S - Prob. 13DRQCh. 5.S - Prob. 1PCh. 5.S - Refer to problem1. Suppose after a certain amount...Ch. 5.S - Refer to Problems 1 and 2 Construct a graph that...Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - The lease of Theme Park, Inc., is about to expire....Ch. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - A manager must decide how many machines of a...Ch. 5.S - Prob. 11PCh. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Give this payoff table: a. Determine the range of...Ch. 5.S - Prob. 16PCh. 5.S - Repeat all parts of problem 16, assuming the value...Ch. 5 - Prob. 1DRQCh. 5 - Prob. 2DRQCh. 5 - How do long-term and short-term capacity...Ch. 5 - Give an example of a good and a service that...Ch. 5 - Give some example of building flexibility into...Ch. 5 - Why is it important to adopt a big-picture...Ch. 5 - What is meant by capacity in chunks, and why is...Ch. 5 - Prob. 8DRQCh. 5 - How can a systems approach to capacity planning be...Ch. 5 - Prob. 10DRQCh. 5 - Why is it important to match process capabilities...Ch. 5 - Briefly discuss how uncertainty affects capacity...Ch. 5 - Prob. 13DRQCh. 5 - Prob. 14DRQCh. 5 - Prob. 15DRQCh. 5 - Prob. 16DRQCh. 5 - What is the benefit to a business organization of...Ch. 5 - Prob. 1TSCh. 5 - Prob. 2TSCh. 5 - Prob. 3TSCh. 5 - Prob. 1CTECh. 5 - Prob. 2CTECh. 5 - Identify four potential unethical actions or...Ch. 5 - Any increase in efficiency also increases...Ch. 5 - Prob. 1PCh. 5 - In a job shop, effective capacity is only 50...Ch. 5 - A producer of pottery is considering the addition...Ch. 5 - A small firm intends to increase the capacity of a...Ch. 5 - A producer of felt-tip pens has received a...Ch. 5 - A real estate agent is considering changing her...Ch. 5 - A firm plans to begin production of a new small...Ch. 5 - A manager is trying to decide whether to purchase...Ch. 5 - A company manufactures a product using two machine...Ch. 5 - A company must decide which type of machine to...Ch. 5 - Prob. 11PCh. 5 - A manager must decide how many machines of a...Ch. 5 - Prob. 13PCh. 5 - The following diagram shows a four-step process...Ch. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - A new machine will cost 18,000, butt result it...Ch. 5 - Remodelling an office will cost 25,000 and will...Ch. 5 - Prob. 1CQCh. 5 - Prob. 2CQCh. 5 - Prob. 3CQ
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