After testing the color-mixing machine for a few weeks, the manager realizes that a 95 percent service level for each of the 5 basic SKU colors is not sufficient because the mixing of each of the original 200 SKUs can only be completed if all of the component colors are available. Assuming all 5 of the basic SKUs are required to mix any one of the orig- inal 200 SKUs, what service level for basic SKUs achieves a 95 percent service level for all of the original 200 SKUs? Using this new (higher) service level, what is the average inventory level across all 5 basic SKUs?

Increases in output and increases in the inflation rate have been linked to

Even sole proprietors should have at least how many computers? 1 2 3 4

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?