Which of the following is/are true?
a. Interpreting the income statement involves studying the relations among revenues, expenses, and net income both over time and across firms.
b. Comparisons are likely more valid for the same firm over time than across firms because of the difficulty in identifying truly similar firms.
c. In evaluating over-time performance of a given firm, the user must understand both current economic conditions and how those conditions may have changed over the period of analysis.
d. In evaluating across-firm performance, the user should control for the underlying business model by selecting peer firms that are similar, economically, to the firm being analyzed.
e. All of the above are true.
E
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Which of the following is NOT a potential cause of the bullwhip effect?
A) shortage gaming B) channel coordination C) order batching D) demand forecast errors E) price fluctuations
Susanna Nanna is the production manager for a furniture manufacturing company. The company produces tables (X) and chairs (Y). Each table generates a profit of $80 and requires 3 hours of assembly time and 4 hours of finishing time
Each chair generates $50 of profit and requires 3 hours of assembly time and 2 hours of finishing time. There are 360 hours of assembly time and 240 hours of finishing time available each month. The following linear programming problem represents this situation. Maximize 80X + 50Y Subject to: 3X + 3Y ? 360 4X + 2Y ? 240 X, Y ? 0 The optimal solution is X = 0, and Y = 120. (a) What would the maximum possible profit be? (b) How many hours of assembly time would be used to maximize profit? (c) If a new constraint, 2X + 2Y ? 400, were added, what would happen to the maximum possible profit?