Bill Fennema, president of Fennema Construction, has developed the tasks, durations, and predecessor relationships

Problem 3.17 Bill Fennema, president of Fennema Construction, has developed the tasks, durations, and predecessor relationships in the following table for building new motels. Draw the AON network and answer the questions that follow.

Activity Immediate Predecessor Optimistic Most Likely Pessimistic
A - 4 8 10
B A 2 8 24
C A 8 12 16
D A 4 6 10
E B 1 2 3
F E,C 6 8 20
G E,C 2 3 4
H F 2 2 2
I F 6 6 6
J D,G,H 4 6 12
K I,J 2 2 3

a) What is the expected (estimated) time for activity C?
c) Based on the calculation of estimated times, what is the critical path?
d) What is the estimated time of the critical path?


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Max Weinberg is studying for an accounting test and has developed the following questions about investments

ACC 291 Week 4 Assignment

E12-1 Max Weinberg is studying for an accounting test and has developed the following questions about investments.
1. What are three reasons why companies purchase investments in debt or stock securities?
2. Why would a corporation have excess cash that it does not need for operations?
3. What is the typical investment when investing cash for short periods of time?
4. What are the typical investments when investing cash to generate earnings?
5. Why would a company invest in securities that provide no current cash flows?
6. What is the typical stock investment when investing cash for strategic reasons?

Instructions
Provide answers for Max.


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Utah Utensil has developed a new kitchen utensil

Utah Utensil has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for sales of the new product:

Year Expected Volume Expected Price per Unit
1 48,000 units $19
2 48,000 units 20
3 90,000 units 16
4 40,000 units 12

If the firm desires to net $3.50 per unit in profit over the life of the product, and selling and administrative expenses are expected to average $50,000 per year, what is the target cost to produce the new utensil?


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Spencer Electronics has just developed a low-end electronic calendar that it plans to sell via a cable channel marketing program

PROBLEM 8-1. Determining the Profit-Maximizing Price [LO 1] Spencer Electronics has just developed a low-end electronic calendar that it plans to sell via a cable channel marketing program. The cable program's fee for selling the item is 20% of revenue. For this fee, the program will sell the calendar over six 10-minute segments in September.

Spencer's fixed costs of producing the calendar are $150,000 per production run. The company plans to wait for all orders to come in, then it will produce exactly the number of units ordered. Production time will be less than three weeks. Variable production costs are $25.00 per unit. In addition, it will cost approximately $5.00 per unit to ship the calendars to customers.

Marsha Andersen, a product manager at Spencer, is charged with recommending a price for the item. Based on her experience with similar items, focus group responses, and survey information, she has estimated the number of units that can be sold at various prices:

Price: Quantity:
$79.99 15,000
$69.99 20,000
$59.99 30,000
$49.99 45,000
$39.99 65,000

Required:
a) Calculate expected profit for each price.
b) Which price maximizes company profit.

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