Exam 18: Career Module

Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below.Suppose the plant decides exclusively to make either the maximum number of iPhone components or the maximum number of Droid phones.Which choice will result in the greater profit? Monthly Product

Which of the following would cause a well-run company to become highly leveraged?

Reducing the value of VC in a break-even analysis means that the business needs to sell fewer units to turn a profit.

A payoff matrix features strategies S1, S2, S3, and S4 and competitive strategies CA1, CA2, and CA3.In a short essay, explain how maximum regret can be calculated for an S1 strategy.

A new upgrade for a product is expected to increase demand by a factor of 4.If all other factors remain equal, how is EOQ likely to change?

Decision trees show the profit outcomes for the plans for two doughnut stores in a strong and a weak economy for the future.Which store is expected to have the greater expected profit?

This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.A minimax Bigg manager choosing S3 would have a greatest possible regret of 2.

In the economic order quantity (EOQ)model, the optimum order quantity is obtained by identifying where the total cost curve and the ordering costs curve intersect.

Fixed costs for a product are $50,000.The product itself sells for $5.00 and it costs $3.00 to make each product.What is the break-even point for the product?

A manager does a break-even analysis and finds that his value for BE, the break-even point, has decreased over time.Which of the following could be responsible for this event?

Which of the following would a manager who wants to minimize her maximum regret choose?

Using a fixed-point reordering system, a business might order new inventory when it is down to about one-third of its maximum stock.

Decision trees are unreliable for making pricing decisions.

In a short essay, explain the type of strategy that an optimistic manager would take for her company.

With choice S1, a manager sees gains of $10 million and $6 million.With choice S2, a manager sees gains of $12 million and $8 million.S2 might be the choice of a pessimistic manager.

Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below.What is the maximum number of units that the factory can make of either type of phone component? Monthly Product

The decision tree shows the profit outcomes for a toy store in a strong and a weak economy for next year.If the economy turns out to be weak, how much profit is the store likely to lose out?

The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy.If the economy is weak, the shop is likely to make 60 percent of a $25,000 profit, or $15,000.

In a short essay, explain the type of strategy that a pessimistic manager would take for his company.

How does a fixed-point reordering system work?