Bratt's Bed and Breakfast, in a small historic New England town, must decide how to subdivide (remodel) the large old home that will become an inn
There are three alternatives: Option A would modernize all baths and combine rooms, leaving the inn with four suites, each suitable for two to four adults. Option B would modernize only the second floor; the results would be six suites, four for two to four adults, and two for two adults only. Option C (the status quo option) leaves all walls intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. Below are the details of profit and demand patterns that will accompany each option. Which option has the highest expected value?
Annual profit under various demand patterns
Capacity p Average p
A (Modernize all) $90,000 .5 $25,000 .5
B (Modernize 2nd) $80,000 .4 $70,000 .6
C (Status Quo) $60,000 .3 $55,000 .7
Branch 2, which represents Option B-Modernize 2nd floor, has the highest expected value, $74,000. This cannot be done as a decision table. POM for Windows solution follows.
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Research has shown that CEOs strongly believed (1) an international orientation should be an important part of college business education; (2) international business skills and knowledge were important not merely for promotion to senior executive positions but also for appointment to entry-level positions, and across a broad array of functional as well as cross-functional areas; and (3) the importance indicated in the preceding points was magnified for companies that anticipated _______ importance of international activities in the next five years.
Fill in the blank(s) with the appropriate word(s).
At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in its lease receivable account. The contract calls for December 31 payments of $15,000 . The lessor's annual reporting period ends December 31 and the contract reflects 10% interest. The lessee made the first payment as required. The direct method statement of cash flows for the lessor should reflect
which of the following in the first year of the lease contract (ignore noncash disclosures)? a. $6,000 operating cash flow; $9,000 investing cash flow b. $15,000 operating cash flow c. $6,000 operating cash flow; $9,000 addition reconciling adjustment d. $9,000 investing cash flow e. None of these answers is correct.
The graphical method is a practical method for solving product mix problems of any size, provided the decision maker has sufficient quantities of graph paper
Indicate whether the statement is true or false
When using the MTM approach:
A) stopwatches are needed to time the elements that go together to make a task. B) there is a problem of biased judgment because performance ratings are needed to derive standards. C) an analyst consults tables that contain the select times for a variety of work elements. D) new work methods can be compared without conducting a time study.