Task 2: SMART Traditionally, Danaos Corporation has been utilising its site office in Karabar for its official purposes. This company has acquired ample land for their office. However, the Queanbeyan & Palerang Regional Council (QPRC) has approached the CEO of Danaos Corporation and asked him whether Danaos would be interested in a different site in Queanbeyan, as the Council would like to reacquire the Karabar site for a Council development. The QPRC has offered four further possible sites: Queanbeyan, Bungendore Drive, Isabella Street or Jerabomberra. The rates, power and maintenance per annum involved for each site are: SITE Queanbeyan Bungendore Drive Isabella Street Jerabomberra Karabar Closeness to Customers Size of Site Car-parking Facilities Visibility Working Environment ATTRIBUTE The benefits that the CEO believes should be taken into consideration are: Closeness to Customers, Size of Site, Car-parking Facilities, Visibility, and Working Environment. The CEO is able to rank the different benefits based on his experience: The CEO decides that the values of the benefits for the different sites are: Closeness to Customers Size of Site Car-parking Facilities Visibility Working Environment SITE QUEANBEYAN 0 70 80 RATES 100 $105,000 $60,000 $35,000 $75,000 $90,000 50 BUNGENDORE DR 70 0 100 30 90 POWER $50,000 $40,000 $45,000 $20,000 $25,000 b. If Danaos accepts the offer from the Council, which Site should Danaos choose? Explain the choice. 70 100 90 10 40 ISABELLA ST 30 100 30 50 70 JERABOMBERRA 100 80 20 70 0 Now, a. From the Cost versus Benefits chart (or the efficient frontier), should Danaos Corporation's CEO accept the Council offer and choose a different site, or should Danaos keep the Site at Karabar? MAINTENANCE $25,000 $40,000 $45,000 $35,000 $50,000 KARABAR 90 100 80 20 100 c. Execute "Sensitivity Analyses" to observe how changing the weights of different attributes can influence the preferred decision. Consider at least three attributes to perform the sensitivity analyses [i.e. three separate attributes for three separate sensitivity analyses. You will have three sensitivity analysis graphs for this].

Task 2: SMART Traditionally, Danaos Corporation has been utilising its site office in Karabar for its official purposes. This company has acquired ample land for their office. However, the Queanbeyan & Palerang Regional Council (QPRC) has approached the CEO of Danaos Corporation and asked him whether Danaos would be interested in a different site in Queanbeyan, as the Council would like to reacquire the Karabar site for a Council development. The QPRC has offered four further possible sites: Queanbeyan, Bungendore Drive, Isabella Street or Jerabomberra. The rates, power and maintenance per annum involved for each site are: SITE Queanbeyan Bungendore Drive Isabella Street Jerabomberra Karabar Closeness to Customers Size of Site Car-parking Facilities Visibility Working Environment ATTRIBUTE The benefits that the CEO believes should be taken into consideration are: Closeness to Customers, Size of Site, Car-parking Facilities, Visibility, and Working Environment. The CEO is able to rank the different benefits based on his experience: The CEO decides that the values of the benefits for the different sites are: Closeness to Customers Size of Site Car-parking Facilities Visibility Working Environment SITE QUEANBEYAN 0 70 80 RATES 100 $105,000 $60,000 $35,000 $75,000 $90,000 50 BUNGENDORE DR 70 0 100 30 90 POWER $50,000 $40,000 $45,000 $20,000 $25,000 b. If Danaos accepts the offer from the Council, which Site should Danaos choose? Explain the choice. 70 100 90 10 40 ISABELLA ST 30 100 30 50 70 JERABOMBERRA 100 80 20 70 0 Now, a. From the Cost versus Benefits chart (or the efficient frontier), should Danaos Corporation's CEO accept the Council offer and choose a different site, or should Danaos keep the Site at Karabar? MAINTENANCE $25,000 $40,000 $45,000 $35,000 $50,000 KARABAR 90 100 80 20 100 c. Execute "Sensitivity Analyses" to observe how changing the weights of different attributes can influence the preferred decision. Consider at least three attributes to perform the sensitivity analyses [i.e. three separate attributes for three separate sensitivity analyses. You will have three sensitivity analysis graphs for this].

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 37E

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