Exam 18: Appendix: Quantitative Module

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

Jeff, a manager at the Flux Soap Store, notices that the store regularly runs out of Jasmine-Berry soap.Currently, the reorder point is fixed when inventory reaches 40 percent of maximum.Which adjustment should Jeff make in a fixed-point reordering system?

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.

This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza.If Sam chooses S3, how is he feeling about the business climate? CA1 CA2 CA3 S1 13 14 7 S2 7 17 12 S3 31 29 4 S4 20 12 21

Mia, a manager at Best Buy, increases the order size for a product that the company sells, which will ________.

This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.From Bigg's point of view, the S1 maximum regret for CA1 is 8. CA1 CA2 CA3 S1 8 5 12 S2 9 14 3 S3 16 13 20

A manager uses break-even analysis to find out how many units of a product he needs to sell to make a profit of zero.

The decision tree shows the profit outcomes for a toy store in a strong and a weak economy for next year.What is the expected value of profit for the store for the year?

Which of the following characterizes a highly leveraged company?

Production data for Streaks is shown.Using linear programming, if the plant makes 100 pairs of running shoes and 100 pairs of soccer shoes, it ends up with $3600 in profit. Monthly Product

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.

The decision tree shows the profit outcomes for a coffee shop in a strong and a weak economy for next year.Suppose a third outcome is considered in which a moderate economy is 33 percent likely to occur.With this added outcome, how does the probability of a weak economy change?

Fixed costs for a product are $60,000.The product itself sells for $4.00 and it costs $1.00 to make each product.How will the break-even point for the product change if the variable cost per unit goes up to $1.50?

The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy.Overall, the shop is expected to make $32,000.

This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza.What is the maximum regret value for S1? CA1 CA2 CA3 S1 13 14 7 S2 7 17 12 S3 31 29 4 S4 20 12 21

Production data for Streaks is shown.Using linear programming, the maximum number of soccer shoes that the plant can make is 250. Monthly Product

Fixed costs for a product are $30,000.The product itself sells for $3.00 and it costs $1.50 to make each product.How can the plant decrease the break-even point by 5000 units?

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.

This payoff matrix gives potential dollar gain values in millions for strategies S1, S2, S3, and S4 for the Bent Fork National Bank and competitive strategies CA1, CA2, and CA3 for the Straight Spoon Bank.If Bent Fork is optimistic, which strategy will it choose? CA1 CA2 CA3 S1 3 24 17 S2 15 16 14 S3 8 19 10 S4 20 2 11

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