Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with thus HW problem asap! Suppose a distribution center is considering three options for expansion. The first one is to expand into a

need help with thus HW problem asap!
image text in transcribed
Suppose a distribution center is considering three options for expansion. The first one is to expand into a new plant, the second to add on third-shift to the daily schedule, and third, a small expansion to the existing facility. There are three possibilities for demand. These are high, medium, and low with each having an equal likelihood of occurring. Suppose that the profits for the expansion plans are as follows: The new plant expected outcomes are $110,000, $50,000,-$25,000, the third shift consideration would result in outcomes of $40,000 $20,000, $5,000 and the small expansion choice would in the following dollar amounts $15,000, $12,000, $6,000. The amount that the company must invest in each alternative is: new plant - $48,000, third shift - $15,100, small expansion - $8,700 a. The profit/loss for the new plant is $ [Select] b. The profit/loss for adding a third shift is $ [Select ] c. The profit/loss for the small expansion is $ (Select] d. Which of the expansion plans should the manager choose? (Select] e. What if an outside consultant was hired by the organization and the probabilities were re- evaluated as a result of better information. The results of the research/feedback are now: 53%, 18%, 29% (high, medium, low). What choice should the manager make and what is the EMV? Select)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter - Classification Deceit

Authors: Kate Mooney

2nd Edition

0071719385, 9780071719384

More Books

Students also viewed these Accounting questions

Question

What is cultural tourism and why is it growing?

Answered: 1 week ago