Because services like cruises and car rentals are perishable, many marketers use
A. machines to replace people for standard transactions.
B. training to standardize delivery.
C. service quality to extend the life of the product.
D. pricing strategies to match supply with demand.
E. incentives to encourage staff to deliver according to standards.
Answer: D
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Given the following notation, what is the break-even sales level in units? SP = selling price per unit, FC = total fixed cost, VC = variable cost per unit
a. SP/(FC/VC) b. FC/(VC/SP) c. VC/(SP - FC) d. FC/(SP - VC)
Use the information in the table (all times are in days) to determine the lowest extra cost for an 18-day project if the base cost for each activity finished in normal time is $1,000
Activity Normal Time Minimum Time Crash Cost ($/day) Predecessor A 10 6 $70 -- B 6 3 $40 -- C 2 2 -- B D 4 2 $60 C E 6 4 $80 A F 8 5 $90 D, E A) $400 B) $420 C) $440 D) $460
IEEE 802.11 is a standard for wireless LANs
Indicate whether the statement is true or false.
Paragas, Inc., is considering the purchase of a machine that would cost $370,000 and would last for 8 years. At the end of 8 years, the machine would have a salvage value of $52,000. The machine would reduce labor and other costs by $96,000 per year. Additional working capital of $4,000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine. The company requires a minimum pretax return of 19% on all investment projects. (Ignore income taxes.)Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.The net present value of the proposed project is closest to:
A. $9,584 B. $78,530 C. $19,528 D. $22,532