Chapter 15: Decisions Under Risk and Uncertainty Answers to Applied Problems 1. a. At the maximax rule the firm should operate plants in US‚ Mexico‚ Canada b. At the maximin rule the firm should operate plants in US only c. The potential regret matrix is: OINC Passes OINC Fails OINC Stalls US only 10 million 0 2 million US and Mexico 5 million 3 million 2.5 million US‚ Mexico‚ Canada 0 5 million 0 And the maximum potential regrets are: US only 10 million US and Mexico
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------------------------------------------------- Production Report for 2001 Unit Information Units to account for: Units in beginning WIP 0 Units started 75‚000 Units to account for 75‚000 Units accounted for: Equivalent Units Physical Direct Conversion Flow Materials Costs Units completed 75‚000 75‚000 75‚000 Units in ending WIP 12‚000 12‚000 11‚400 Total units accounted for 87‚000 87‚000 86‚400
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A few identical‚ low cost products. * Units continuously produced for inventory in automated process Q(4-4): What are the purpose of a product-costing system? The purpose of a product-costing system: * Determine product and service cost‚ and value inventory. * Facilitate management planning‚ cost. * Control and performance evaluation. * Facilitate managerial decision making. Q(4-5): define the term equivalent units and explain how the concept is used in process
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Equivalent units‚ zero beginning inventory. 1. Direct materials cost per unit ($750‚000 ÷ 10‚000) $ 75.00 Conversion cost per unit ($798‚000 ÷ 10‚000) 79.80 Assembly Department cost per unit $154.80 2a. Solution Exhibit 17-16A calculates the equivalent units of direct materials and conversion costs in the Assembly Department of Nihon‚ Inc. in February 2009. Solution Exhibit 17-16B computes equivalent unit costs. 2b. Direct materials cost per unit $ 75 Conversion cost per unit 84
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in physical units‚ describe a grinding process for January : WIP‚ beginning 19‚000 Started during current period 150‚000 To account for 169‚000 Spoiled units 12‚000 Good units completed and transferred out 132‚000 WIP‚ending 25‚000 Accounted for 169‚000 Inspection occurs at the 100% completion stage. Normal spoilage is 5 % of the good units passing inspection. 1. Compute the normal and abnormal spoilage in units. 2. Assume that the equivalent-unit cost of a spoiled
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Cutting Department for the month of February 2005 follow: Work in process‚ January 31-- 50‚000 units 100% complete for direct materials‚ 40% completed for conversion costs actual costs of direct materials‚ $70‚500; actual costs of conversion‚ $34‚050 Units started during February‚ 225‚000 Units completed during February‚ 200‚000 Work in process‚ February 28-- 75‚000 units 100% complete for direct materials‚ 20% completed for conversion costs Direct materials
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reasonably accurate for the discount store’s order. Shorewood should also consider how its regular customers might react to the lower price offered to the discount store. 7-19 (a) Superstore faces a problem of maximizing contribution margin per unit of scarce resource. Here‚ the scarce resource is shelf space. Superstore requires at least 24 square feet for each category. The store manager should assign additional space to the category with the highest contribution margin per square foot.
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to small activities to unit test (which there are over 17 of those). The idea of retakes is a no-no in IB Biology so you only get one shot on each of these Unit Test and after that the only way to improve the grade on it is to do test corrections but even then it is quite the climb to improve your grade if you are solely relying on test corrections to balance your test scores out. Tips for Students 1.) During the course of the year‚ IB Biology will be throwing unit after unit at you and it is pivotal
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Q1.1 Although NRFC believe estimation of pizza sales could base on Contadina pasta’s 24% market-penetration rate‚ more conservative calculation should take different ranges of penetration rate into consideration. By choosing three possible penetration rates of 5%. 15% and 25%‚ the estimated results are demonstrated in Exhibit 1. In all three scenarios‚ kit only concept will not make up to company’s expectation. For kit and topping concept‚ only if penetration rate reach to 15%‚ launch decision could
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Questions Q1. Q2 Q3 Q4 Term I Based on Unit 1‚ 2 & 3 Based on Unit 1 Based on Unit 2 Based on Unit 3 Total Term II Based on Unit 4‚ 5 & 6 Based on Unit 4 Based on Unit 5 Based on Unit 6 Maximum Marks* 15 15 15 15 60 *In each question; maximum marks with options should be set for 22 or 23 marks with internal options. General Guidelines Each paper is divided into six equal units. First 3 units of each paper are expected to be taught during first term and next 3 units are expected to be taught during
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