Increasing the number of parts or components in a product tends to reduce its reliability. Why is this true only when adding components in series?
What will be an ideal response?
Adding parts in series involves an additional multiplication by a value less than one, so that reliability must fall. Adding parts in parallel (the redundancy concept) increases reliability because only one part of the parallel system needs to function.
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Which of the following differentiates the cost of retained earnings from the cost of newly-issued
common stock? A) the cost of the pre-emptive rights held by existing shareholders B) the greater marginal tax rate faced by the now-larger firm C) the larger dividends paid to the new common stockholders D) the flotation costs incurred when issuing new securities
You randomly draw a sample of n = 12 where ?? = 40. If the sample mean is 5, which of the following are the bounds of a 99% confidence interval?
a. -24.73, 34.73 b. 0.30, 9.70 c. 1.42, 8.58 d. -17.63, 27.63
Purchase economies and transportation economies are not complementary
Indicate whether the statement is true or false
A company asked one of its analysis teams to analyze and create models that help decide whether it should manufacture a particular product or outsource its production. The different components are given below.
Fixed Cost, FC = $25,000 Material Cost per Unit, MC = $2.15 Labor Cost per Unit, LC = $2.00Outsourcing Cost per Unit, O = $4.50 ? Build an influence diagram that illustrates how to calculate the difference in cost of manufacturing and outsourcing.Using mathematical notation, construct a mathematical model for calculating the difference in cost of manufacturing and outsourcing.Implement your model from part (b) in an Excel spreadsheet model using the principles of good spreadsheet design.Using the spreadsheet model, what will be the resulting savings due to outsourcing if the company wants to make 30,000 units of a particular product? What will be an ideal response?