Simulation methods are very good at evaluating a decision where the path itself is decision dependent

The Dairy Division of Famous Foods, Inc. produces and sells milk to outside customers. The operation has the capacity to produce 200,000 gallons of milk a year. Last year's operating results were as follows:

Sales (160,000) gallons $500,000 Variable costs 312,000 Contribution margin 188,000 Fixed costs 100,000 Net Income $ 88,000 Assume the Yogurt Division wants to purchase 30,000 gallons of milk from the Dairy Division. The minimum price that will increase the Dairy Division's profit is a) $0.55 per gallon. b) $1.95 per gallon. c) $2.50 per gallon. d) $1.18 per gallon.

After exporting, the next level of commitment a firm can make to a foreign market is a contractual agreement. Two of the most common types of such agreements are ________

A) contract manufacturing and contract marketing B) contract manufacturing and strategic alliances C) joint ventures and franchising D) warehousing and financing E) licensing and franchising