Exam 6: A Quantitative Module

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

A company is worried about meeting its interest expenses, so it should pay close attention to its times interest earned.

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

This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake. If Al chooses S3, what kind of strategy is he using?

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

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. What is the maximum regret value for S1?

Production data for Streaks is shown. Using linear programming, if running shoes are represented by R and soccer shoes by S, 5R + 3S < 750 is the correct constraint equation for design. Monthly Product

Production data is shown for the number of hours required per unit for the Running and Soccer versions of Streaks, custom made athletic shoes. Using linear programming, if running shoes are represented by R and soccer shoes by S, the expression $16R + $20S is equal to the maximum profit that can be made. Monthly Product

The greater the ratio of TFC to (P - VC) is means that the business needs to sell fewer units to make a profit.

An optimistic manager will typically follow a maximax choice.

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 is worried that if he chooses the wrong investment strategy, his company could lose out on a great deal of money. Which strategy should he follow?

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.

In a short essay, explain what the value of P in queuing theory provides for a manager.

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 S1, how is he feeling about the business climate?

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

In a decision tree, each possible outcome ________.

A current ratio of 1.5 to 1 for an organization suggests that the organization will not be able to meet its short-term debt obligations.

The break-even point is computed by the formula BE = TFC/(P - VC)].