Supply Chain Management - DryIce Inc

1. DryIce Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. They anticipate nationwide demand for the year 2001 to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites - New York, Atlanta, Chicago and San Diego. Plants could have a capacity of either 200,000 units (small) or 400,000 units (large). The annual fixed costs at the four locations are shown in the table below, along with the cost of producing and shipping an air conditioner to each of the four markets... Where should DryIce build it... click for more

Liquidity position of the enterprise

Why are suppliers of credit interested in the liquidity position of the enterprise? Why is it beneficial for a small business enterprise also to make use of borrowed capital to finance the capital requirements of the enterprise?

Capital Budgeting- Deer Valley Lodge 1.Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. 2.Assume that the after-tax required rate of return for Deer Valley is 8%, the income tax rate is 40%, and the MACRS recovery period is 10 years. Compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. 3.What subjective factors would affect the investment decision?

Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million, and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the extra capacity will be needed. (Assume that Deer park will sell all 300 lift tickets on those 40 days.) Running the new lift will cost $500 a day for the entire 200 days the lodge is open. Assume that the lift tickets at Deer Valley cost $55 a day and the added cash expenses for each skier-day are $5. The new lift has an economic life of 20 years. 1.Assume that the... click for more

Supply Chain Management

Quesion 2

Andre has asked you to evaluate his business, Andre's Hair Styling.

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Assume that the only service performed is the giving of haircuts, the unit price of which is $12. Andre has asked you to find the following information. 1. Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. 2. Determine the annual break-even point, in number of haircuts. 3. What will be the operating income if 20,000 haircuts are performed? ... click for more