Business, 02.09.2021 22:20, scottytohotty
Your company has asked you to determine the financial risks of manufacturing 6,000 units of a product rather than purchasing them from a vendor at $66.50 per unit. The production line will handle exactly 6,000 units and requires a one-time setup cost of $50,000. The production cost is $60/unit.
Your manufacturing personnel inform you that some of the units may be defective, as shown below:
% defective 0 1 2 3 4
probability of occurrence (%) 40 30 20 6 4
Defective items must be removed and replaced at a cost of $145/defective unit. However, 100 percent of units purchased from vendors are defect-free. Construct a payoff table, and using the expected-value model, determine the financial risk and whether the make or buy option is best.
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 14:40, ZoomZoom44
You are purchasing a bond that currently sold for $985.63. it has the time-to-maturity of 10 years and a coupon rate of 6%, paid semi-annually. the bond can be called for $1,020 in 3 years. what is the yield to maturity of this bond?
Answers: 2
Business, 22.06.2019 16:30, cadenbukvich9923
Why is investing in a mutual fund less risky than investing in a particular company’s stock?
Answers: 3
Business, 22.06.2019 23:00, aprilleigh102
Ernesto baca is employed by bigg company. he has a family membership in his company's health insurance program. the annual premium is $5,432. ernesto's employer pays 80% of the total cost. ernesto's contribution is deducted from his paycheck. what is his annual contribution? $1,086.40 $1,125.65 $1,527.98 $1,567.20 save and exit
Answers: 3
Business, 23.06.2019 02:00, angiecamachoac1728
True of false: the chancellor of a university has commissioned a team to collect data on students' gpas and the amount of time they spend bar hopping every week (measured in minutes). he wants to know if imposing much tougher regulations on all campus bars to make it more difficult for students to spend time in any campus bar will have a significant impact on general students' gpas. his team should use a t test on the slope of the population regression.
Answers: 1
Do you know the correct answer?
Your company has asked you to determine the financial risks of manufacturing 6,000 units of a produc...
Questions in other subjects:
Computers and Technology, 20.03.2021 06:00
Social Studies, 20.03.2021 06:00
English, 20.03.2021 06:00
English, 20.03.2021 06:00
Mathematics, 20.03.2021 06:10
