Question AAn alternative under consideration by a company will hav.pdf

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Question A An alternative under consideration by a company will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point level of output is 500 units. {Note: Break-Even Output=Fixed Cost/(Price-Average Variable Cost} Select one: True False Question B A department works one 7-hour shift and works 250 days per year. A new product is being introduced that requires 7,000 hours of processing time annually. The number of machines required is 4. Select one: True False Question C In the EOQ model with planned shortages, if annual demand is 500, holding cost is $200, ordering cost is $15, and back-order cost is $400, EOQ (rounded to the next whole number) is: Select one: a. 8 b. 16 c. 112 d. 9 e. 11.

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Read the Resolving Ethical Business Challenges case at the covering Daniel and his role at the YOLO compay and his concerns over a bacon product spokesperson. Then respond to the end of chapter questions. Attached is the case Study and the questions. RESOLVING ETHICAL BUSINESS CHALLENGES* Daniel just graduated from Michigan University and "No question about it. As far as bacon goes, Uber is landed a job as a copywriter at Young, Olsen, Lindle, second to none in taste. If people are going to eat bacon, and Olson (YOLO) Advertising assigned to one of the why not eat the best? Even if it is a heart attack waiting to subsidiary accounts of Delicious Uber Bacon Ingredi- happen," Ms. Kunies joked. ents Extraordinaire Corporation. This conglomerate was The next day Chloe asked Daniel how it went. He primarily a food processing manufacturer beginning 100 explained their conversation and expressed concern over years ago with pork in the Midwest. Overall corporate the fact Ms. Kunies is currently a vegetarian, and she sales of beef, chicken, pork, and seafood were more than attributed her high cholesterol to Uber bacon. Daniel $750 million each year. YOLO considered many adver- felt relief when he saw the concern in Chloe's face, but tising options and opted for a celebrity spokesperson. soon realized her concern was about Ms. Kunies pullThat meant Daniel would work with Gloria Kunies as ing out of the advertisement. Daniel reassured Chloe the celebrity endorser. Ms. Kunies is a well-known, well- that Ms. Kunies still wanted to promote the product, loved, young, and vibrant actress with a large younger but it seemed like a contradiction to have a vegetarian following. promoting bacon. Chloe responded by saying as long as Chloe, President of YOLO, asked Daniel to step Ms. Kunies had eaten the bacon at some point in her life into her office. "Daniel, this new account is a good start and thinks it is a good product, it makes no difference as for you. We usually don't let our new copywriters han- to whether she currently eats the bacon. She continued, dle accounts by themselves, but you have proven to be "Sometimes in advertising, you have to add a spin to the a capable employee. Your job on this account is to write message you are communicating so it fits with the prodcopy for the commercials using Ms. Kunies's product uct you are selling. Not only are you selling a product, testimonials. The copy needs to be crafted as a testimo- but more importantly, you are selling an experience, a nial, targeting the market of 17- to 30 -year-olds. Ms. feeling, an idea that appeals to consumers." Kunies already signed an affidavit as to being a bona fide As Daniel walked home that evening, he wondered user of the product. The scripts should feature her tes- how he was going to write this advertisement. He did tifying to the quality, value, and tastiness of the bacon. not want to begin his career in a dishonest manner, but I want you to meet her tomorrow so you can sta.

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