Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Management Expert

Tri-products is trying to decide whether to make or to buy an accessory item for one of its products. It is projected that this item will sell for $10 each. If the item is outsourced, there is virtually no cost other than the $6 per unit that the company would pay its supplier. Internally, there are two choices. Process A requires an investment of $120,000 for design and equipment, but results in a $4 per unit cost. Process B requires only a $100,000 investment, but its per-unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that 50,000 units will be sold, and a 50% chance that 100,000 units will be sold. Using decision trees and EMV, what is the company's best choice? You do not have to show the decision tree.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M9104947

Have any Question?


Related Questions in Business Management

Identify stakeholder training requirements and needs from a

Identify stakeholder training requirements and needs from a knowledge system requires research. Give examples of methods you have used, or would consider using in the future, to assess client learning needs.

What is the purpose of load balancing i need full

What is the purpose of load balancing?( I need full explanation) I already know what load balancing is, I just need to know why we use it

Discuss the link between strategy and performance select an

Discuss the link between strategy and performance. Select an industry and discuss 2 rival firms in that industry and how they illustrate the difference between strategy and performance.

Outline how the culture of a country might influence the

Outline how the culture of a country might influence the risks of doing business in that country. Illustrate the answer with examples.

What is an example of a company suffering a loss as a

What is an example of a company suffering a loss as a result of an Internet-related physical risk. Describe what happened

Suppose that the long-run aggregate supply curve is

Suppose that the? long-run aggregate supply curve is positioned at a real GDP level of ?$15 trillion in base year? dollars, and the? long-run equilibrium price level? (in index number? form) is 108. The corresponding ful ...

What techniques and communication would you use when

What techniques and communication would you use when identified problems and issues in your workplace. And what is the follow up action you would take after?

What does the gross domestic product gdp omit besides used

What does the Gross Domestic Product (GDP) omit besides used goods and intermediate goods?

Do you all see health care leadership being only as

Do you all see health care leadership being only as effective as the peripheral support offered to help maintain this elevated level of results? Do you all envision that top level management must be a bit "intrusive" int ...

Compare and contrast the hierarchical and decentralized

Compare and contrast the hierarchical and decentralized methods of control.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As