Valuable electronics uses a standard part in the manufacture of different types of radios. the total cost of producing 29,000 parts is $105,000, which includes fixed costs of $50,000 and variable costs of $55,000. the company can buy the part from an outside supplier for $2 per unit and avoid 30% of the fixed costs. assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. if valuable outsources, what will be the effect on operating income?

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year. a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs. b. calculate the eoq. c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?

Identify and describe a variety of performance rating scales that can be used in organizations including graphical scales, letter scales, and numeric scales.