Brandon Production is a small firm focused on the assembly and sale of custom computers.The firm is facing stiff competition from low-priced alternatives, and is looking at varioussolutions to remain competitive and profitable. Current financials for the firm are shown in thetable below. In the first option, marketing will increase sales (and costs) by 50%. The next optionis Vendor (Supplier) changes, which would result in a decrease of 12% in the cost of inputs.Finally, there is an OM option, which would reduce production costs by 25%.Business Function Current ValueCost of Inputs $50,000Production Costs $30,000Revenue $83,000Which of the options would you recommend to the firm if it can only pursue one option? Inaddition, briefly commenton the feasibility and contribution of each option.

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Answered: Brandon Production is a small firm…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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