question archive 1) Steve Grass Cutting company has located in a community that has just announced 2000 new homes will be built in the next 5-10 years
1) Steve Grass Cutting company has located in a community that has just announced 2000 new homes will be built in the next 5-10 years
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1) Steve Grass Cutting company has located in a community that has just announced 2000 new homes will be built in the next 5-10 years. Thats a lot of new consumers !! But the Steve Grass Cutting company could never handle the new volume of potential customers, so an expansion will be required.
What are the risks and rewards of each type of strategy? What capacity strategy should be employed and why?
2) From the lecture or your Textbook please review the Ellison Seafoods example.
As you can see, its is a pretty straight foward calculation but they have received different costs and a different forecast: Use the revenue from the textbook example.
What is the Expected Value of the data below.
Common: $500 per shipment
Contract: $5200 + $400 per shipment
Lease: $10000 + $50 per shipment
Also Forecast has changed: 20 shipments (20%), 50 shipments (30%), 110 shipments (50%).
Calculate the Expected Value, show your work, and make your recommendations.
Also calculate each BEP and indifference points. Us the profit number from the lecture/textbook.
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