Suppose the benchmark competitive product has a price of $300, costs $200 to install, and averages $500 in usage and maintenance costs. Your product is priced at $400, costs $100 to install, and averages $400 in usage and maintenance costs
In this situation, the economic value of your product over the benchmark competitive product is ________.
A) -$200
B) -$100
C) $0
D) $100
E) $200
D
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Sandy Fiero works as the chief knowledge officer for Bend Lumbar Company. She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Sandy determines that the best value she can add is by creating a service that offers free next day shipping on any order over $50. Where in the value chain is Sandy adding value?
A. The primary value activity operations. B. The primary value activity marketing and sales. C. The primary value activity outbound logistics. D. The primary value activity inbound logistics.
We are interested in determining what type of model best describes the relationship between two variables x and y.
a.For a given data set, an estimated regression equation relating x and y of the form
= b0 + b1x was developed using Excel. The results are shown below. Comment on the adequacy of this equation for predicting y. Let ? = .01.
?
SUMMARY OUTPUT
Regression Statistics
Multiple R0.5095
R Square0.2596
Adjusted R Square0.1362
Standard Error2.0745
Observations8
?
ANOVA ?
df
SS
MS
F
Significance F
Regression1
9.0536
9.0536
2.1037
0.1971
Residual6
25.8214
4.3036
Total7
34.875
?
Coefficients
Standard Error
t Stat
P-value
Intercept2.7857
1.6164
1.7234
0.1356
x0.4643
0.3201
1.4504
0.1971
?
b.An estimated regression equation for the same data set (as in part a) of the form
= b0 + b1x + b2x2 was developed. The Excel output is shown below. Comment on the adequacy of this equation for predicting y. Let ? = .01.
?
SUMMARY OUTPUT
Regression Statistics
Multiple R0.9680
R Square0.9370
Adjusted R Square0.9118
Standard Error0.6628
Observations8
ANOVA ?
df
SS
MS
F
Significance F
Regression2
32.6786
16.3392
37.1951
0.0010
Residual5
2.1964
0.4393
Total7
34.875
?
Coefficients
Standard Error
t Stat
P-value
Intercept-2.8393
0.9247
-3.0706
0.0278
x3.8393
0.4714
8.1437
0.0005
x-squared-0.375
0.0511
-7.3335
0.0007
?
c.Use the results of Part b and predict y when x = 4.
What will be an ideal response?
Maintaining ___________ amounts of inventory can mask other problems in the organization.
What will be an ideal response?
A company is setting its direct materials and direct labor standards for its leading product
Direct materials cost from the supplier are $9 per square foot, net of purchase discount. Freight-in amounts to $0.40 per square foot. Basic wages of the assembly line personnel are $14 per hour. Payroll taxes are approximately 21% of wages. Benefits amount to $2 per hour. How much is the direct materials cost standard per square foot? A) $9.40 B) $9.00 C) $16.00 D) $25.00