Pepsico In class discussion

Question 1 You are hired as a consultant for Skater Boys Incorporated, a firm with over five years experience in the skate board industry.Due to changing demand and a move to environmentally friendly products, the company wishes to enter the market with a new eco- friendly finish on its skate boards. Based on your analysis of the company's operations, Skater Boys Inc has three main choices. After careful inspection of their current equipment the company can spend $800 in refurbishment of their old equipment or make major modifications to its operations at a cost of $1100. If these options are not taken, they can also choose to purchase new equipment at a cost of $1800. If the firm chooses to refurbish their existing equipment, materials and labour per skate board will be $1.10 while a material and labour cost of $0.70 per board is associated with the major modification choice. If however the company chooses to buy new equipment, the associated variable cost is estimated to be $0.40 per…

Question 1 You are hired as a consultant for Skater Boys Incorporated, a firm with over five years experience in the skate board industry.Due to changing demand and a move to environmentally friendly products, the company wishes to enter the market with a new eco- friendly finish on its skate boards. Based on your analysis of the company's operations, Skater Boys Inc has three main choices. After careful inspection of their current equipment the company can spend $800 in refurbishment of their old equipment or make major modifications to its operations at a cost of $1100. If these options are not taken, they can also choose to purchase new equipment at a cost of $1800. If the firm chooses to refurbish their existing equipment, materials and labour per skate board will be $1.10 while a material and labour cost of $.70 per board is associated with the major modification choice. If however the company chooses to buy new equipment, the associated variable cost is estimated to be $0.40 per…

Question: Widget is a commodity that is traded in a perfectly competitive global market that consists of many small price-taking firms. The firms fall in three categories with the following characteristics: Number of firms Capacity of firm's plant (units AVC (S per Fixed cost per unit at full per year) Capital charge per unit at full capacity ($/unit) unit) capacity ($/unit) Type 25 100 units 30 15 10 1 Туре 50 50 units 40 20 10 Type 100 40 units 45 25 10 3 Assume that each firm's AVC is constant up to the capacity of its plant. Further, assume that once built, a firm's plant has zero redeployment value. Finally, assume that a typical entrant has a cost structure identical to the Type 1 firms and that there are many potential entrants. • The demand for widgets is Q = 8000 - 20P, where P is $ per unit and Q is measured in units per year. (Remember: use only whole numbers, and do not use any other characters or spaces.) a. The short-run equilibrium price in the world widgets market is:…

Topic A Problem: While on vacation, you go to a miniature golf course on a weekday and notice no other customers there while you golf. Why do you think a miniature golf course would stay open during the week when it seems like the revenue from so few customers could not possibly cover the costs of running the golf course? What is an example of another business that stays open even when it's slow, and their revenue does not seem like it could cover their costs?

Problem 11-17 (algo) Blue Skies Aviation is a manufacturer of small single-engine airplanes. The company is relatively small and prides itself on being the only manufacturer of customized airplanes. The company's high standard of quality is attributed to its refusal to purchase engines from outside vendors, and it preserves its competitive advantage by refusing to sell engines to competitors. To achieve maximum efficiencies, the company has organized itself into two divisions: a division that manufactures engines and a division that manufactures airplane bodies and assembles airplanes. Consultants have estimated that: Demand for Blue Skies' customized planes is given by P= 740,000 - 2,000 Q. The cost of producing engines is Ce(Qe) = 6,000Q², and the cost of assembling airplanes is Ca(Q) = 36,000 Q. What problems would occur if the managers of each division were given incentives to maximize each division's profit separately? Lower profits due to randomized pricing Lower profits due to…

PART B (INDEPENDENT THINKING AND APPLICATION) 5) (KEY QUESTION) Consider the following strategic interaction between two Australia telecommuncation companies deciding to set the prices of their 'unlimited calls' mobile package. Optus 要 Low Medium High 2, 3 13, 1 10, 8 Low 17, -8 Telstra Medium 1, 10 15, 3 High -10, 19 3, 16 11, 9 Put yourself in the shoes of a CEO of these companies. Try to explain the business reasons behind the relationships between the various payoffs (obviously, this is just an example, they may differ in the real world and change over time). For example, why is Low in the payoff matrix the best response to the opponent playing High? Why is the payoff from (High, High) higher for both players than from (Medium, Medium)? b. State all the dominated strategies in the game, by which strategy they are dominated, and whether weakly or strictly. What is the equilibrium outcome by dominance, if any? What are the pure-strategy Nash equilibria of this game? d. In the…

Problem 11-17 (algo) Blue Skies Aviation is a manufacturer of small single-engine airplanes. The company is relatively small and prides itself on being the only manufacturer of customized airplanes. The company's high standard of quality is attributed to its refusal to purchase engines from outside vendors, and it preserves its competitive advantage by refusing to sell engines to competitors. To achieve maximum efficiencies, the company has organized itself into two divisions: a division that manufactures engines and a division that manufactures airplane bodies and assembles airplanes. Consultants have estimated that: Demand for Blue Skies' customized planes is given by P=700,000 - 2,000 Q. The cost of producing engines is Ce(Q) = 4,000 Qe², and the cost of assembling airplanes is Ca(Q) = 16,000 Q. What problems would occur if the managers of each division were given incentives to maximize each division's profit separately? Lower profits due to double marginalization Lower profits due…

Research topic: How leadership can positively influence organizational performance.

Principles of EconomicsTitle: Market Structure Analysis  Objective:  The objective of this assignment is to analyze and compare the market structures of a company that fits the definition of a monopoly, a monopolistic competition, and an oligopoly. Students will gain insights into the business strategies, market behavior, and implications for consumers and competition in different market structures.  Instructions:  1) Company Selection - Each group should choose one company that clearly fits the definition of either a monopoly, monopolistic competition, or oligopoly. The selected companies can be local or international.  2) Market Structure Identification - Identify and describe the market structure in which each selected company operates. Provide evidence and reasons for classifying the company under the chosen market structure.  3) Characteristics Analysis - For each company, analyze and discuss the characteristics associated with its respective market structure. Consider factors…

Subject: business outsourcing

Topic: Perfect Competition In The Long Run Question: "Output determination in increasing cost industry" Please explaing in detail with graphical represetation

Textbook: Business Law: Text & Exercises by LeRoy Miller, William E. Howell The following is taken from the "Ethical Questions" section of Chapter 25: Devin Fink was the manager of Precision Tune Auto Care in Charlotte, North Carolina. Randall Stywall brought her car to the shop to have its rear shocks replaced. Fink filled out the service order, which included a cost estimate. Later, Stywall returned for her car, and Fink collected payment for the repair work. When Stywall started to drive away, however, the car performed as if the shocks had not been replaced. A complaint to Precision’s corporate office resulted in the discovery that, in fact, the repair work had not been done and that Fink had kept Stywall’s payment. Fink was charged with larceny against his employer. Fink argued that he had not committed this crime because Stywall was the victim, not Precision. Which agency principles support the larceny charge against Fink? What does Fink’s defense suggest about his ethics?…

Memo 1 To:Pricing Manager, Tri-State Region From:Regional Vice President, Tri-State Region Re:Revenue from EPIX We  recently  added  the  EPIX  Movie  Channels  as  part  of  a  new  tier  of  programming  for  our  digital  video  subscribers.  The  EPIX  channels  are  sold  as  an  add-on  package  for  $9.75  per  month,  but  we  would  like  to  potentially increase our revenue from our subscriber base. Currently we have about 15,059 subscribers, generating monthly revenue of $146,823.Some  have  suggested  we  should  cut  price,  as  customers  tend  to  be  fairly  price  sensitive  for  add-on  packages.  However,  in  this  case,  if  we  lower price for our new subscribers, we really need to cut it to all of our existing  subscribers  as  well.  I  have  some  concerns  that  lowering  price  will be counter-productive.The   marketing   department   calculated   some   subscription   levels   at   various price points in this region, and I need you to perform the analysis.…

Given: Desktop Publishing Software Inc, develops and markets software packages for business computers. Although, sales have grown rapidly during recent years, the company's management fears that a recent onslaught of new competitors may severly retard future growth opportunities. Therefore, it believes that the time has come to "get big or get out". The marketing and accounting departments have provided management with the following monthly demand and cost information:    P = $1,000 - $1Q TC = $50,000 + $100Q Question 1: Find; Derive the Marginal Revenue & Marginal Cost Equations TR = ___________ MR = ___________ TC = ___________ MC = ___________ Question 2: Profit Maximization: Solve for Monthly Q, P, TR, TC and Profit Q = ___________ P = ___________ TR = __________ TC = __________ PROFIT = __________   Question 3: Revenue Maximization: Solve  for monthly Q, P, TR, TC, and Profit Q = ____________ P = ____________ TR = ___________ TC = ___________ Profit = __________

Week 3: Learning Unit 1: Ethics of Accruals and Deferrals   Wells Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Wells' chemical pesticides. During the coming year, Wells will have environmentally safe and competitive replacement chemicals to replace these discontinued products. Sales in the next year are expected to greatly exceed those of any prior year. Therefore, the decline in this year's sales and profits appears to be a one-year aberration. Even so, the company president believes that a large dip in the current year's profits could cause a significant drop in the market price of Wells's stock and make it a takeover target. To avoid this possibility, he urges Tim Allen, controller, to accrue every possible revenue and to defer as many expenses as possible in making this period's year-end adjustments. The president says to Tim, “We need the revenues this year, and next year we can…

Economic Recommendation for Ned and Larry’s Ice Cream Company about the Product Container Size   Ned and Larry’s Ice Cream Company produces specialty ice cream and frozen yogurt in pint-sized containers. The latest annual performance report praised the firm for its progressive policies but noted that environmental issues like packaging disposal were a concern. In an effort to reduce the effects of consumer disposal of product packaging, the report stated that Ned and Larry’s should consider changing the size of product container.   At present, the firm packages its ice cream and frozen yogurt in pint containers. The packaging cost per gallon and handling labor cost per gallon are $0.256 and $0.128, respectively. The pint-sized container will require postconsumer landfill contribution from discarded packaging of 6,500 cubic yards per year.   By packaging the product in containers larger than the current pints, the plastic- coated bleached sulfate board containers will hold more ounces…

1-18 Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs. If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even?

Question 20 of 20 Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in mechanical engineering and could easily go to work for his brother's company earning $76000 a year, his true passion is for cheese. Consider the list of Reggie's revenue and expenses from last year. Please use the information provided to answer the questions. Revenue from 2010 $90000 Rent $18000 Equipment $6000 Supplies $3000 What is Reggie's accounting profit? What is Reggie's economic profit? -$13000 $63000 $3000 O -$13000 -$63000 $3000 $63000 -$63000

Topic: Theory of Firm: Production & CostPlease help me answer all of these.

(c) In merging with Air Jamaica, Caribbean Airlines sought to gain an advantage from operating with economies of scale. Discuss the ways in which this merger may have caused Caribbean Airlines to suffer from internal diseconomies of scale.

Sub-part to be solved  iv) what charge should the company charge to maximize revenue? v)What price should the company charge to earn at least$3500 in revenue?

Assignment Content Suppose a firm uses sugar in a product that you purchase. The firm vertically integrates by purchasing sugar farms that produce the sugar organically and in a way that makes it also sustainable for the environment. How would that influence your demand for that product? What other purpose than profitability might cause the firm to make this decision to vertically integrate in this way? Your journal entry must be at least 200 words in length. No references or citations are necessary.

ANSWER NUMBER 2 ONLY SUBJECT: MANAGERIAL ECONOMICS COURSE CODE: BEC 101

Topic: : Cost function, economies of scale, technological change

Question 4: (A)The price of a product is determined by market conditions. The company is a price taker rather than a price maker. It estimates product cost by subtracting a desired profit margin from a competitive market price. It makes reference to the competitive market; it is fundamentally customer-focused and an important concept for new product development. From the above identify the concept; explain the definition and process of concept.

Keep or Drop a Division Jan Shumard, president and general manager of Danbury Company, was concerned about the future of one of the company's largest divisions. The division's most recent quarterly income statement follows: $3,751,500 Sales Less: Less: Cost of goods sold Gross profit Selling and administrative expenses Operating (loss) 2,722,400 $1,029,100 1,100,000 $ (70,900) Jan is giving serious consideration to shutting down the division because this is the ninth consecutive quarter that it has shown a loss. To help him in his decision, the following additional information has been gathered: The division produces one product at a selling price of $100 to outside parties. The division sells 50% of its output to another division within the company for $83 per unit (full manufacturing cost plus 25%). The internal price is set by company policy. If the division is shut down, the user division will buy the part externally for $100 per unit. The fixed overhead assigned per unit is $20.…

executive summary for why india will be good country to open costco?