subject
Business, 26.09.2021 14:00 UratazZ

Ritz Products's materials manager, Tej Dhakar, must determine whether to make or buy a new semiconductor for the wrist TV that the firm is about to produce. Three million units are expected to be produced over the life cycle. If the product is made, start-up and production costs of the make decision total $ 2 million, with a probability of 0.4 that the product will be satisfactory and a 0.6 probability that it will not. If the product is not satisfactory, the firm will have to reevaluate the decision. If the decision is reevaluated, the choice will be whether to spend another $ 2 million to redesign the semiconductor or to purchase. Likelihood of success the second time that the make decision is made is 0.5. If the second make decision also fails, the firm must purchase. Regardless of when the purchase takes place, Dhakar's best judgment of cost is that Ritz will pay $ 0.40 for each purchased semiconductor plus $ 1 million in vendor development cost. a) Assuming that Ritz must have the semiconductor (stopping or doing without is not a viable option), what is the best decision?
The firm should

the semiconductors because this decision has an expected cost of $
. (Enter your response as an integer.)

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 15:40
Colter steel has $5,550,000 in assets. temporary current assets $ 3,100,000 permanent current assets 1,605,000 fixed assets 845,000 total assets $ 5,550,000 assume the term structure of interest rates becomes inverted, with short-term rates going to 10 percent and long-term rates 2 percentage points lower than short-term rates. earnings before interest and taxes are $1,170,000. the tax rate is 40 percent earnings after taxes = ?
Answers: 1
question
Business, 22.06.2019 19:30
When it is 4: 00 a.m. in halifax, it is 1: 00 p.m. in karachi, and when it is 9: 00 a.m. in karachi, it is 5: 00 a.m. in warsaw. mary left halifax to fly to karachi, but she accidentally left her watch on warsaw time. according to mary’s watch, she left halifax at 9: 40 p.m. on monday. the local time when she arrived at karachi was 3: 00 p.m. tuesday. how long was mary’s flight? a. 9 hours, 20 minutes b. 13 hours, 20 minutes c. 14 hours, 20 minutes d. 17 hours, 20 minutes
Answers: 1
question
Business, 22.06.2019 21:10
In transportation model analysis, the stepping-stone method is used to: a. obtain an initial feasible solutionb. evaluate empty cells for possible degeneracyc. evaluate empty cells for potential solution improvementsd. identify a dummy origin pointe. balance supply and demand
Answers: 1
question
Business, 23.06.2019 01:00
The notarial evidence form is completed by
Answers: 2
You know the right answer?
Ritz Products's materials manager, Tej Dhakar, must determine whether to make or buy a new semicondu...
Questions
question
Mathematics, 06.05.2020 09:00
question
Mathematics, 06.05.2020 09:00
question
Mathematics, 06.05.2020 09:00
Questions on the website: 13722367