As a result of an increase in demand for maize seeds, kenya seed company is reviewing its operations. a decision has to be made to select one of the following options for the next year.
option 1: make no change. annual profit is shs. 150,000. there is no likelihood that this will provoke new competition.
option 2: raise prices by 50%. if this occurs there is a 60% chance that farms will be set up in completion this year. in this situation the company estimates its annual profit as follows:
2a: with new competitor 2b: without new competitor
probability profit(ksh) probability profit (ksh)
0.4 160,000 0.5 220,000
0.2 110,000 0.2 170,000
0.4 90,000 0.3 120,000
option 3: expand the maize seed quickly at a cost of ksh. 50,000, keeping prices the same. the profits are then estimated to be like in 2b above except that the probabilities would be 0.4, 0.3, and 0.3 respectively.
required:
draw a decision tree for this problem.
using expected values analyze the decision tree and advise.

Atoy manufacturer makes its own wind-up motors, which are then put into its toys. while the toy manufacturing process is continuous, the motors are intermittent flow. data on the manufacture of the motors appears below.annual demand (d) = 50,000 units daily subassembly production rate = 1,000setup cost (s) = $85 per batch daily subassembly usage rate = 200carrying cost = $.20 per unit per year(a) to minimize cost, how large should each batch of subassemblies be? (b) approximately how many days are required to produce a batch? (c) how long is a complete cycle? (d) what is the average inventory for this problem? (e) what is the total annual inventory cost (holding plus setup) of the optimal behavior in this problem?

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?