Assume that Cane expects to produce and sell 115,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 30,000 additional Alphas for a price of $160 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 14,000 units. Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.)
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The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?
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The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.
Answers: 3
Assume that Cane expects to produce and sell 115,000 Alphas during the current year. One of Cane's s...
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