Faced with rising pressure for a $17 per hour minimum wage rate, the farming industry is currently exploring the possible use of robotics to replace some farm workers. The Produce Bot is one such robot; its job is to thin out a field of lettuce, removing the least promising buds of lettuce. By removing these weaker plants, the stronger lettuce plants have more room to grow. Assume the following facts: i (Click the icon to view the information.) While the Produce Bot itself may be in workable condition for up to five years, assume that the farm would view its implementation as a one-year experiment. Requirement Perform a cost-benefit analysis for the first year of implementation to determine whether the Produce Bot would be a financially viable investment if the minimum wage is raised to $17 per hour. (Round your answers to the „bola dallon\ Cost-Benefit Analysis Expected Benefits (Cost Savings): Total expected benefits Expected Costs: Total expected costs Net expected benefit (cost) ...

Faced with rising pressure for a $17 per hour minimum wage rate, the farming industry is currently exploring the possible use of robotics to replace some farm workers. The Produce Bot is one such robot; its job is to thin out a field of lettuce, removing the least promising buds of lettuce. By removing these weaker plants, the stronger lettuce plants have more room to grow. Assume the following facts: i (Click the icon to view the information.) While the Produce Bot itself may be in workable condition for up to five years, assume that the farm would view its implementation as a one-year experiment. Requirement Perform a cost-benefit analysis for the first year of implementation to determine whether the Produce Bot would be a financially viable investment if the minimum wage is raised to $17 per hour. (Round your answers to the „bola dallon\ Cost-Benefit Analysis Expected Benefits (Cost Savings): Total expected benefits Expected Costs: Total expected costs Net expected benefit (cost) ...

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...

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Faced with rising pressure for $14 per hour minimum wage rate, the farming industry is currently exploring the possible use of robotics to replace some farm workers. The Lettuce Techis one such robot; its job is to thin out a field of lettuce, removing the least promising buds of lettuce. By removing these weaker plants, the stronger lettuce plants have more room to grow. Assume the following facts: One Lettuce Tech would do the work of 25 farm workers. 2. Each farm worker typically works 45 hours on the lettuce thinning process each year. 3. Each farm worker would earn $14 per hour plus 7.65% payroll tax. 4. The Lettuce Tech is estimated to cost $6,000 plus $900 for delivery. 5. Annual costs of operating the Lettuce Tech are expected to be $1,200. While the Lettuce Tech itself may be in workable condition for up to five years, assume that the farm would view its implementation as a one-year experiment. Requirement Perform a cost-benefit…
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. Dawson Electronics is a manufacturer of high-tech control modules for lawn sprinkler systems. Denise, the CEO, is trying to decide if the company should develop one of two potential new products, the Water Saver 1000 or the Greener Grass 5000. With each product, Dawson can capture a bigger market share if it chooses to expand capacity by buying additional machines. Given different demand scenarios, their probabilities of occurrence, and capacity expansion versus no change in capacity, the potential sales of each product are summarized in Table 5.50. Table 5.5 Demand and Sales Information for Dawson Electronics Low Demand. Medium Demand High Demand Low Demand Medium Demand High Demand Water Saver 1000 Dollar Sales ($1,000) With Capacity Expansion 1,000 2,000 3,000 700 Greener Grass 5000 Dollar Sales ($1,000) 1,000 2,000 2,500 Without Capacity Expansion 3,000 5,000 1,000 2,000 3,000 Probability of Occurrence 0.25 0.50 0.25 0.25 0.50 0.25 a. What is the expected payoff for Water Saver…
Assume that a company, UGrowIt, wants to introduce a new service helping people grow vegetables. The service is targeted at people who are new to growing vegetables or have not been successful at growing vegetables in the past. UGrowIt will travel to people’s gardens and provide gardening advice on how to get started, eliminate pests, or troubleshoot other gardening problems. The company plans to offer the service at a price that is affordable for most people. UGrowIt also offers a lower-priced option of ZOOM that includes a video inspection of the garden. A local nursery and the garden center at a hardware store are allowing UGrowIt to set up booths to sell the service to new customers. UGrowIt has created pamphlets to hand out to potential customers that introduce the service, provide contact information, and offer two pieces of gardening advice. Which of the marketing Ps is a pamphlet? Product Physical evidence Planning Process
Simple Rate of Return; Payback Period; Internal Rate of Return The Elberta Fruit Farm of Ontario always has hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms. Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm: a. Currently, the farm is paying an average of $40,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $94,500, and it would have an estimated 12-year useful life. The farm uses straight-line depreciation on all assets and considers salvage value in computing depreciation expense. The estimated salvage value of the cherry picker is $4,500. c. Annual out-of-pocket costs…
Suppose that you have been given a summer job as an Intern at Issac Alrcams, a company that manufactures sophisticated spy cameras for remote-controlled millitary reconnalssance alrcraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financlal statements before approving the loan. Requlred: Classify each cost listed below as elther a product cost or a perlod cost for the purpose of preparing financial statements for the bank. Costs Product Cost or Period Cost 1. Depreciation on salespersons' cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors' salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) 9. Advertising costs.…
please help me understand this problem Answer each question as detailed as possible. 1)Bart and Millhouse own a small factory that manufactures rubber snakes used to scare away birds from houses, gardens and playgrounds. A recent and unexplained increase in the bird population in Springfield has significantly increased the demand for rubber snakes. To take advantage of this opportunity, Bart and Millhouse plan to add a new molding machine that will double the output of their existing facility. The cost of the new machine is $20,000. With this purchase, current assets must increase by $5,000 and current liabilities will increase by $3,000. The economic life of the machine is 4 years, and it falls under the MACRS three year depreciation schedule. The machine is expected to be obsolete at the end of the fourth year and have no salvage value. Bart and Millhouse anticipate recouping 100% of the additional investment in net working capital at the end of year 4. Sales are expected to…
Consider a drill press containing three drill bits. The current policy (called individual replacement) is to replace a drill bit when it fails. The firm is considering changing to a block replacement policy in which all three drillbits are replaced whenever a single drill bit fails. Each time the drill press is shut down, the cost is $100. A drill bit costs $50, and the variable cost of replacing a drill bit is $10. Assume that the time to replace a drill bit isnegligible. Also, assume that the time until failure for a drill bit follows an exponential distribution with a mean of 100 hours. This can be modeled in @RISK with the formula 5RISKEXPON (100). (Note: If you have the academic version of @RISK, this problem will require more RISKEXPON functions than the 100 allowed, but there is an easy workaround. An exponentially distributed random variable can be generated with Excel functions only using the formula =-Mean*LN(RAND()). Then @RISK can still be used to run the simulation.)…
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A manager is trying to decide whether to buy one machine or two. If only one machine is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales would be lost, however, because the lead time for delivery of this type of machine is six months. In addition, the cost per machine will be lower if both machines are purchased at the same time. The probability of low demand is estimated to be 0.20 and that of high demand to be 0.80. The after-tax NPV of the benefits from purchasing two machines together is $70,000 if demand is low and $170,000 if demand is high. If one machine is purchased and demand is low, the NPV is $100,000. If demand is high, the manager has three options: (1) doing nothing, which has an NPV of $100,000; (2) subcontracting, with an NPV of $140,000; and (3) buying the second machine, with an NPV of $120,000. What is the best decision and what is its expected payoff? Best decision is to buy nothing…
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A manager must decide how many machines of a certain type to buy. The machines will be used to manufacture a new gear for which there is increased demand. The manager has narrowed the decision to two alternatives: buy one machine or buy two. If only one machine is purchased and demand is more than it can handle, a second machine can be purchased at a later time. However, the cost per machine would be lower if the two machines were purchased at the same time. The estimated probability of low demand is .30, and the estimated probability of high demand is .70. The net present value associated with the purchase of two machines initially is $79,200 if demand is low and $130,600 if demand is high. The net present value for one machine and low demand is $99,000. If demand is high, there are three options. One option is to do nothing, which would have a net present value of $124,680. A second option is to subcontract; that would have a net present value of $115,650. The third option is to…