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- Duddy Kravitz owns the Saint Viateur Bagel store. His world famous bagels are hand rolled, boiled in honey-water and baked in a wood-burning oven. The store sells 5,000 bagels per day and is open 365 days of the year. The bagels are so popular that, on weekends, the customer line-up runs half-way down the block. Uncle Benjy thinks that the wood-fired oven should be replaced by a modern gas oven, which would reduce costs by $0.02 per bagel. A new oven would cost $105,000. Duddy is considering Uncle Benjy's idea, but he only plans to be in business for another two years. The bagels are sold for $0.75 each. The cost of producing each bagel with the wood-burning oven is $0.50 which includes labour and raw materials. The current oven was purchased five years ago for $20,000. It could be sold today for $5,000 and will be worth $3,000 in two years. A new oven costs $105,000 today and could be sold for $55,000 in two years. Duddy's cost of capital is 9%. Assume that investment cash flows occur…Question Four a) A fim, focusing on producing meat pie has a demand function 20 25-0.25P. If fixed cost is 145 and variable cost per urit function is 2Q- 40 + , where Q is number of meat pie produced and Pis the price per unit: i. 275 Determine the number of meat pies that maximizes the company's profit. ii. How much should the fimcharge per unit of the product? iii. Find the total profit at the profit mximizing level of output. iv. Using the own price edasticity of demand, comment on the fimis pricing policy optiors. b) The production function for Amzonbuưgers, producers of delicious burgers at Sao Tome, is given as: Q = K%L% If the wage rate is $15 per unit of labour, and cost of capital is $1,920 per unit and you have 1 unit of capital which carmot be changed, and the firmemploys 8 units of labour; i. Calculate the fimts total cost ii. Calculate the fim's average cost ii. Estimate the marginal product of labour1. DIHL Co. isa Danao-based logisiCs company owned by Engr. Donaid H. Lalican. Antcipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facity in Talisay City, or subcontract Ohiala Move, a smal-time company. A study conducted by the marketing department forecasted the following payoff values, which are summartzed in the tabie below. The values are expressed as gains and alpha = 0.6. What decision will Engr. Lalcan make using the different criteria under conditions of uncertainty. Question is what is the worst possible decision he will make? States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue 450,000 250,000 250,000 500,000 Construct a facility in Talisay 800,000 400,000 300,000 700,000 Subcontracting Ohlala Move 100,000 10,000 150,000 300,000
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- What are factors that drive demand and supply with the Airbnb sector, use clearly labelled diagams.As an international manager of a US business that has just developed, I would export the computer from the US because I will have full control of how the computer will be manufactured and distributed to Europe. Another pro that I would consider to export from the US is that the patent would be able to protect the design of the computer, which will reduce the result of the property being an infringement. A con from exporting from the United States that it would cost more money from the taxes, duties, and the trade barriers that are from Western Europe. Another con would be that it would take much longer to exist something from over seas. First, I will start with the cons of the process where you might not have full control over the manufacturing process, which can really impact the product of the computer. This can significantly be a bad idea. A pro of having to license a European firm to manufacture and market the computer in Europe would be how they know all of the distribution…What makes the Lincoln Electric system so successful in the United States?