subject
Business, 03.03.2020 03:53 aliyjenibv

The product design group of Iyengar Electric Supplies, Inc., has determined that it needs to design a new series of switches. It must decide on one of three design strategies. The market forecast is for 200 comma 000 units. The better and more sophisticated the design strategy and the more time spent on value engineering, the less will be the variable cost. The chief of engineering design, Dr. W. L. Berry, has decided that the following costs are a good estimate of the initial and variable costs connected with each of the three strategies explained below. Low-tech: a low-technology, low-cost process consisting of hiring several new junior engineers. This option has a fixed cost of $45 comma 000 and variable-cost probabilities of 0.3 for $0.55, 0.4 for $0.50, and 0.3 for $0.45. Subcontract: a medium-cost approach using a good outside design staff. This approach would have a fixed cost of $65 comma 000 and variable-cost probabilities of 0.7 of $0.45, 0.2 of $0.40, and 0.1 of $0.35. High-tech: a high-technology approach using the very best of the inside staff and the latest computer-aided design technology. This approach has a fixed cost of $75 comma 000 and variable-cost probabilities of 0.9 of $0.40 and 0.1 of $0.35. What is the best decision based on an expected monetary value (EMV) criterion? (Note: We want the lowest EMV, as we are dealing with costs in this problem.)

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 16:00
2standard deviation a particular telephone number is used to receive both voice calls and fax messages. suppose that 25% of the incoming calls involve fax messages, and consider a sample of 25 incoming calls. (a) what is the expected number of calls among the 25 that involve a fax message?
Answers: 2
question
Business, 22.06.2019 02:00
True or false: a smart store layout moves customers in and out as fast as possible. a) true b) false
Answers: 2
question
Business, 22.06.2019 09:30
Which are the best examples of costs that should be considered when creating a project budget?
Answers: 2
question
Business, 22.06.2019 11:00
On analyzing her company’s goods transport route, simone found that they could reduce transport costs by a quarter if they merged different transport routes. what role (job) does simone play at her company? simone is at her company.
Answers: 1
You know the right answer?
The product design group of Iyengar Electric Supplies, Inc., has determined that it needs to design...
Questions
Questions on the website: 13722363