OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 6, Problem 8PA
a.
Summary Introduction
Interpretation:Decision needs to be made for whether the firm should make the part-in-house or purchase it from a supplier.
Concept Introduction: The total cost of production or outsourcing and break-even point are useful quantifiable measures which helps company in making operational decisions which affects the company profits.
b.
Summary Introduction
Interpretation:Decision needs to be made whether thecompany should accept the offer at $ 156.
Concept Introduction: The total cost of production or outsourcing and break-even point are useful quantifiable measures which helps company in making operational decisions which affects the company profits.
c.
Summary Introduction
Interpretation:Company needs to determine the maximum price they can pay for the quantity of 3500 parts.
Concept Introduction: The total cost of production or outsourcing and break-even point are useful quantifiable measures which helps company in making operational decisions which affects the company profits.
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1) Around the Clock Production of Fire Nozzles
View the videos Around the Clock Production of Fire Nozzles 1 https://media.gaspar.mheducation.com/GASPARPlayer/play.html?id=132KoZwS0yMEgsToDUsZjJe (9.44 minutes, Ctrl+Click on the link) and Around the Clock Production of Fire Nozzles 2 https://media.gaspar.mheducation.com/GASPARPlayer/play.html?id=44JM0cKtFLqHP5bad6KOHAm (7.43 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapters 12 and/or 13) after watching these videos.
Note: As a rough guideline, please try to keep the written submission to one or two paragraphs.
2) Cyberdyne Systems stocks and sells Cyberdyne glucose meters. The firm gathered the following information from its South Pasadena office:
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In the following problems assume, unless otherwise stated, that S = $40, σ = 30%, r =8%,and δ =0.
13.1 Suppose you sell a 45-strike call with 91 days to expiration. What is delta? If the option is on 100 shares, what investment is required for a delta-hedged portfolio? What is your overnight profit if the stock tomorrow is $39? What if the stock price is $40.50?
Chapter 6 Solutions
OM (with OM Online, 1 term (6 months) Printed Access Card)
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