Our demand for january is 20,000 units. each unit requires 0.5 square feet to store and we receive 2 deliveries per month. to design a new warehouse, we will take out a loan and pay $10 per square foot per month for 20 years. after careful planning designs, we have determined that only half our space will be used for storage of actual product (and the other half will be used for aisles, bathrooms, and loading docks). in addition, our warehouse costs $2 per square foot per month to operate. each unit we process in our warehouse costs $1 to ship out. alternatively, we are considering renting some space. at a cost of $14 per unit per month, an outside contractor is willing to store our product. in addition, they will charge us $2 per unit for shipping. determine the total cost for january if we design a 15,000 sq ft facility.

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game. expert answer