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Samoset Fans, Inc. manufacturers its fan blades in-house. The owner, Betty Dice, doesn’t outsource any fan parts except fan motors — all other fans parts are made in-house. Their current process and its equipment are getting old. Maintenance and repair costs are increasing at thirteen percent per year. She and her company team are evaluating two new processes. The first process has an annual fixed cost of $800,000 and a variable cost of $12 per fan blade. The second process is more automated and requires an annual fixed cost of $1,300,000 and a variable cost of $10 per fan blade. The internal transfer cost of a fan blade is $15, and this helps the firm determine the total manufactured cost of a completed fan.

What is the break-even quantity between these two processes? Round your answer to the nearest whole number. ______ fan blades

What volume of demand does Samoset Fans, Inc need to make an internal profit on fan blades of $190,000, assuming they installed the process A. Round your answer to the nearest whole number.

___ fan blades

 
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Justification Recommendation report

You are an employee of a mid-sized advertising company named Everest. Your company is in the enviable position of having secured the advertising contract for an international music festival that will take place in your city. The problem is you can’t seem to keep your employees around long enough to ensure continuity within projects. It seems as though the advertising business is a revolving door. New college and university grads are eager to work for you, but six months later, once you have trained them, they leave for more lucrative jobs at other agencies. Your CEO is too busy to figure out a solution, so he has asked your Research Manager to write him a report on some possible solutions.

Your task – As the Research Manager at Everest, research and write a recommendation report in the letter format for your boss outlining some possible solutions to the revolving door problem. You can invent a name for your boss. Be careful of recommending very expensive solutions as your boss is well known for being thrifty.

 
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An automated car wash called Jet Express outside a large Texas city on the beltway is deciding whether to build and install one dedicated vehicle wash line or have two parallel wash lines. There are no other car washes at this intersection and there will be none because all the land is developed. The second line allows for some economies of scale in total cost. The monthly fixed cost of one wash line is $17,000 per month or $204,000 per year. This includes the mortgage payment, taxes on the building, and wash equipment. The variable cost for this single line is $18 per vehicle. The fixed cost for two wash lines is $24,000 per month or $288,000 per year, and the variable cost to operate two lines is $15 per vehicle because some wash crews can work both lines. The price of the average interior and exterior car wash is $23. Use the Excel template Break-Even in MindTap to answer the following questions:

  1. What is the break-even quantity for one and two automated wash line? Round your answers to the nearest whole number.

    For one wash line: vehicles per year
    For two wash lines: vehicles per year
  2. Annual forecasts of demand for this site ranges from 36,000 to 72,000 per year. Calculate the net profit/loss of the site in each of the following situations. Round your answers to the nearest dollar. If your answer is zero, enter “0”. Use a minus sign to enter loss, if any.

    One Two
    wash line wash lines
    36,000 vehicles $ $
    54,000 vehicles $ $
    72,000 vehicles $ $
 
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there could be more than one answer!

As a new hire, you find out that all communications at your new company must be in a specific format. Which of the following could be reasons for this requirement?

Select one or more:

a. Ensuring a consistent public image

b. Ensuring legal requirements are met

c. Using passive voice is always correct

d. Using excessive details is useful

e. Ensuring a logical flow

You arrive at work on Monday, read an email in your inbox, and roll your eyes. You know a long email chain will follow. Which of the following could cause this reaction?

Select one or more:

a. The writer uses synonyms–which means you have to guess at when something new is being discussed.

b. The cost of a project is described as “expensive,” but not even a ballpark figure is given.

c. Two dates are given in bold–so you know exactly when changes will occur.

d. Two technical terms you are not familiar with are used–so you have look them up.

e. Scrolling is required–and you have 10 other emails to look at.

You find that your work emails almost always generate several return emails asking for clarification. You look at your sent emails and realize some of them use abstract language. Which sentences below are too abstract?

Select one or more:

a. We will ship your order by October 1.

b. In the near future, we will all need to be using secured email.

c. We will all begin our new secure email platform by January 4.

d. Recently, we received a customer complaint.

e. On May 25, John Doe informed us that order #1457 had not been delivered.

You just started to work at a new company and need to start writing to clients. Since books and websites offer different advice on format and style, which of the following should you do?

Select one or more:

a. Look at documents written by other people in your company

b. Find out if the company has its own style guide for employees to use

c. Use an old business communications textbook

d. Use the same format you used at your prior job

e. Use a random template you found on the internet

You are tasked with writing directions for a new product your company is getting ready to launch. Which of the following should you do?

Select one or more:

a. Use jargon common in your department

b. Ask a coworker if the directions are understandable

c. Write for a 4th to 6th grade reading level

d. Use synonyms

e. Be clear and concise

 
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