A carrier comes to you (the shippers TM) and has a rate of 1.16 cents per mile that is 45cents cheaper than the average of the other eight carriers returning your bid package. What would be your reaction? Explain your answer.
The quoted price is quite ambiguous. I need to ask the following questions from the carrier representative before taking a decision:
The details will help in having a clearer picture of whether the deal of the new carrier is more profitable or the existing deal of the 8 carriers is more beneficial for business.
A carrier comes to you (the shippers TM) and has a rate of 1.16 cents per...
Case: Cost Structures for Global Shippers Inc. Management from Global Shippers Inc, an international shipping business, is in the process of assessing the choice between two different cost structures for the business. Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option B has the opposite—relatively lower variable costs in its cost structure but higher fixed costs. Assume that delivery selling prices per unit are constant. The table below contains critical information in...
Case: Cost Structures for Global Shippers Inc. Management from Global Shippers Inc, an international shipping business, is in the process of assessing the choice between two different cost structures for the business. Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option B has the opposite relatively lower variable costs in its cost structure but higher fixed costs. Assume that delivery selling prices per unit are constant. The table below contains critical information...
Case: Cost Structures for Global Shippers Inc. Management from Global Shippers Inc, an international shipping business, is in the process of assessing the choice between two different cost structures for the business Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option B has the opposite—relatively lower variable costs in its cost structure but higher fixed costs. Assume that delivery selling prices per unit are constant. The table below contains critical information in...
The Mintcoin Inc has just paid an annual dividend of 40 cents per share. You forecast that dividends of Mintcoin Inc will grow at the rate of 25% a year over the next four-year period. From year five on, you expect the subsequent growth rate of dividends to decrease to 8%, the industry average If the required rate of return for the stock is 12%, calculate its price.
A dairyman comes to you for some help. He says the average production per cow in his existing herd is 22,000 lbs per year. He says he has enough barn space, forage, and labor for 8 more cows. His neighbor has offered to sell him the cows for $1,400 each. He is estimating the cows will produce 20,000 pounds each. The value of milk is S16.75/cwt. He currently purchases all of his feed. The average cost to feed each cow...
You have been the VP of purchasing at ABC manufacturing in New York for a decade and already have established solid relationships with most of your suppliers. You are extremely happy and in close relation with one particular supplier, XYZ Company in San Francisco whom you selected as the supplier of the new personal computers for your company. The price you paid was 10 percent less than any other offers. Now the sales representative of XYZ has approached you about...
Sex Linked Traits 4. Assume you are a genetic counselor and a couple comes to you for counseling They want to know if there is any chance that their first baby might have muscular dystrophy. M.D. is a sex linked recessive trait. Neither of the parents has M.D. but the wife's father has M.D. Prove your answer by showing the genotypes and phenotypes of the parents, grandparents and possible offspring. Parents Fill in the boxes Genotype Phenotype Possible Genotypes or...
1. Physics: How does an aircraft carrier that has an average weight of 102,000 tons float on the ocean? Explain your answer. 2. Chemistry: Why does solid water in the form of ice float on liquid water? Explain your answer. * 3. Integrated: A fresh egg sinks in freshwater and floats in saltwater. Why does this occur? Explain your answer. * 4. Science Practices: A teacher shows students that a regular Coke can will sink in water but Diet Coke can will...
Jobs and productivity! How do retail stores rate? One way to answer this question is to examine annual profits per employee. The following data give annual profits per employee (in units of 1 thousand dollars per employee) for companies in retail sales. Assume σ ≈ 3.9 thousand dollars. 3.5 6.9 4.0 9.0 7.5 6.0 8.6 6.3 2.6 2.9 8.1 −1.9 11.9 8.2 6.4 4.7 5.5 4.8 3.0 4.3 −6.0 1.5 2.9 4.8 −1.7 9.4 5.5 5.8 4.7 6.2 15.0 4.1...
During the past two months, Thomas Train, vice president of transportation for Specialty Metals Company, a metals servicing company with operations in ten mid-western states, has been soliciting bids for the movement of tool steel - specialty steel used for manufacturing tools and related products. Tom’s goal is to reduce the shipping cost of this high-value steel. The supplier is located in Weirton, West Virginia, 350 miles from Specialty’s Toledo, Ohio, service center. Steel Haulers, Inc., a regional contract motor...