Fae technologies is deciding whether it should begin production of a new toy robot. it has manufactured children’s toys before but nothing as advanced as its latest robot so historical data is at a minimum. the company believes that they can secure the materials for manufacture for between $65-85 per unit and labor costs would be between $15-25 per unit. management’s expectations are that materials will cost $70 per unit and labor $25 per unit and that 800 units will be sold monthly. should fae decide to manufacture the robots in-house, maintenance of the factory machine would cost $15,000 per month. however, management has found that another alternative is for the company to outsource the labor for a flat rate of $35 per unit. the company expects to sell between 750-1000 units per month initially at a price of $149. provide recommendations for fae technologies that will maximize profit. also include base, worst, and best case scenario calculations and provide a scenario summary. be sure to also consider the outsourcing alternative and make a recommendation on which alternative has the most profit potential. lastly, include a breakeven amount of units sold for the worst-case without outsourcing.

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Camilo is a self-employed roofer. he reported a profit of $30,000 on his schedule c. he had other taxable income of $5,000. he paid $3,000 for hospitalization insurance. his self-employment tax was $4,656. he paid his former wife $4,000 in court-ordered alimony and $4,000 in child support. what is the amount camilo can deduct in arriving at adjusted gross income (agi)?

“strategy, plans, and budgets are unrelated to one another.” do you agree? explain. explain how the manager’s choice of the type of responsibility center (cost, revenue, profit, or investment) affects the behavior of other employees.