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Acme Outdoors Co. is introducing a new line of sport all-terrain vehicles (ATVs). Acme is considering...
Acme Outdoors Co. is introducing a new line of sport all-terrain vehicles (ATVs). Acme is considering program proposals from two competing companies: A & B. A's marketing plan is expected to generate high sales with a 75% probability and only a 25% likelihood of low sales.
An alternative marketing plan from company B could result in an initial 60% likelihood of high ATV sales and 40% probability of low sales. But company B's offer also contains a provision for an optional follow-on promotion if a low response is returned. If an optional follow-on ATV promotion is conducted by company B, there is a 70% chance of ultimately realizing high sales.
Draw an decision tree diagram with branches labeled and probabilities, do not solve.
Solutions
milcah answered 1 year agoRelated Solutions
4. (5 pts) Acme Outdoors Co. is introducing a new line of sport all-terrain vehicles (ATVs)....
4. (5 pts) Acme Outdoors Co. is introducing a new line of sport
all-terrain vehicles (ATVs). Acme is considering marketing
program
proposals from two competing companies: A & B. A's marketing
plan is expected to generate high sales with a 75%
probability and only a 25% likelihood of low
sales.
An
alternative marketing plan from company B could result in an
initial 60% likelihood of high ATV sales and 40% probability
of low
sales. But company B's offer also contains...
Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer...
Polarix is a retailer of ATVs (all-terrain vehicles) and
accessories. An income statement for its Consumer ATV Department
for the current year follows. ATVs sell for $4,000 each. Variable
selling expenses are $210 per ATV. The remaining selling expenses
are fixed. Administrative expenses are 50% variable and 50% fixed.
The company does not manufacture its own ATVs; it purchases them
from a supplier for $1,830 each.
POLARIX
Income Statement—Consumer ATV Department
For Year Ended December 31, 2017
Sales
$
652,000...
Ducet Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Monster and...
Ducet Sports Inc. manufactures and sells two styles of All
Terrain Vehicles (ATVs), the Monster and Dragon, from a single
manufacturing facility. The manufacturing facility operates at 100%
of capacity. The following per-unit information is available for
the two products: 1 Monster Dragon 2 Sales price $5,400.00
$5,300.00 3 Variable cost of goods sold 3,255.00 3,400.00 4
Manufacturing margin $2,145.00 $1,900.00 5 Variable selling
expenses 1,065.00 946.00 6 Contribution margin $1,080.00 $954.00 7
Fixed expenses 485.00 305.00 8 Income from...
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster...
PowerTrain Sports Inc. manufactures and sells two styles of All
Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon,
from a single manufacturing facility. The manufacturing facility
operates at 100% of capacity. The following per-unit information is
available for the two products:
1
Mountain Monster
Desert Dragon
2
Sales price
$5,200.00
$5,300.00
3
Variable cost of goods sold
3,240.00
3,450.00
4
Manufacturing margin
$1,960.00
$1,850.00
5
Variable selling expenses
712.00
1,108.00
6
Contribution margin
$1,248.00
$742.00
7
Fixed expenses
470.00...
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster...
PowerTrain Sports Inc. manufactures and sells two styles of All
Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon,
from a single manufacturing facility. The manufacturing facility
operates at 100% of capacity. The following per-unit information is
available for the two products:
1
Mountain Monster
Desert Dragon
2
Sales price
$5,400.00
$5,225.00
3
Variable cost of goods sold
3,290.00
3,500.00
4
Manufacturing margin
$2,110.00
$1,725.00
5
Variable selling expenses
1,030.00
889.00
6
Contribution margin
$1,080.00
$836.00
7
Fixed expenses
475.00...
Hawthorn Corporation manufactures custom all-terrain vehicles (ATVs) and uses a job costing system to as- sign...
Hawthorn Corporation manufactures custom all-terrain vehicles
(ATVs) and uses a job costing system to as- sign and track costs.
March's beginning inventory consisted of the following
components:
Raw materials
Work in process
Finished goods
$65,000
27,000
80,000
The above beginning work in process consisted only of Job
#02.778. The finished goods inventory consisted of Job #01.987
($42,500) and Job #02.665 ($37,500).
The following transactions occurred during March:
Purchased $112,000 of raw materials.
Used $117,000 of raw...
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster...
PowerTrain Sports Inc. manufactures and sells two styles of All
Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon,
from a single manufacturing facility. The manufacturing facility
operates at 100% of capacity. The following per-unit information is
available for the two products: 1 Mountain Monster Desert Dragon 2
Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold
3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5
Variable selling expenses 712.00 1,108.00 6 Contribution margin
$1,248.00 $742.00 7 Fixed expenses 470.00...
Kuantan ATV, Inc. assembles five different models of all-terrain vehicles (ATVs) from various ready-made components to...
Kuantan ATV, Inc. assembles five different models of all-terrain
vehicles (ATVs) from various ready-made components to serve the Las
Vegas, Nevada, market. The company uses the same engine for all its
ATVs. The purchasing manager, Ms. Jane Kim, needs to choose a
supplier for engines for the coming year. Due to the size of the
warehouse and other administrative restrictions, she must order the
engines in lot sizes of 1,000 each. The unique characteristics of
the standardized engine require special...
7. A company that manufactures brakes for cars has just released a line of all-terrain vehicles....
7. A company that manufactures brakes for cars has just
released a line of all-terrain vehicles. Using the same research
and findings from the development of the ATV brakes, the
manufacturer is redesigning its car brakes. By sharing the research
across the business units for both vehicles, the company is
increasing company profitability through:
a.economies of scope.
b. commonalities.
c. product bundling.
d. restructuring.
8. To pursue a diversification strategy, managers must have
the ability to:
a.outsell all of the...
Norister Inc. is considering introducing a new product line. This will require the purchase of new...
Norister Inc. is considering introducing a new product line.
This will require the purchase of new fixed assets of $2.4 million.
The company estimates that demand for the new product will be
approximately 15,000 units per year, with a price per unit of $100.
The variable cost of producing each unit of the product is $35, and
fixed costs per year will be $100,000. Demand for the product will
remain constant for six years, after which both demand and
production...
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