need help with thus HW problem asap! Suppose a distribution...

50.1K

Verified Solution

Question

Accounting

need help with thus HW problem asap!
image
Suppose a distribution center is considering three options for expansion. The first one is to expand into a new plant, the second to add on third-shift to the daily schedule, and third, a small expansion to the existing facility. There are three possibilities for demand. These are high, medium, and low with each having an equal likelihood of occurring. Suppose that the profits for the expansion plans are as follows: The new plant expected outcomes are $110,000, $50,000,-$25,000, the third shift consideration would result in outcomes of $40,000 $20,000, $5,000 and the small expansion choice would in the following dollar amounts $15,000, $12,000, $6,000. The amount that the company must invest in each alternative is: new plant - $48,000, third shift - $15,100, small expansion - $8,700 a. The profit/loss for the new plant is $ [Select] b. The profit/loss for adding a third shift is $ [Select ] c. The profit/loss for the small expansion is $ (Select] d. Which of the expansion plans should the manager choose? (Select] e. What if an outside consultant was hired by the organization and the probabilities were re- evaluated as a result of better information. The results of the research/feedback are now: 53%, 18%, 29% (high, medium, low). What choice should the manager make and what is the EMV? Select)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students