Walmart's purchasing power enables the firm to benefit from economies of scale and receive volume discounts from suppliers.

Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $20 per unit. The crossover between machine A and machine B is

A) 4,000 units, with A more profitable at low volumes.
B) 4,000 dollars, with A more profitable at low volumes.
C) 4,000 units, with B more profitable at low volumes.
D) 4,000 dollars, with B more profitable at low volumes.
E) cannot be calculated from the information provided.

Exxon Corp. bought an oil rig exactly 6 years ago for $100,000,000. Exxon depreciates oil rigs straight line over 10 years assuming no salvage value. The rig was just sold to British Petroleum for $30,000,000. What Capital Gain/Loss will Exxon report on this transaction?

A) Gain of $30,000,000
B) Gain of $10,000,000
C) Loss of $10,000,000
D) Loss of $30,000,000

Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the ($150, $300) payoff,

A) all it has to do is threaten to buy yogurt machines, no matter what Gooi does.
B) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $50.
C) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $150.
D) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $300.
E) it has to move before Gooi; there is no other way.

_______ would be appropriate for manufacturers of bulky,heavy,or fragile products.

A) Product layout
B) Customer-oriented layout
C) Fixed-position layout
D) Process layout

The index that includes the largest number of actively-traded stocks is

A) the NASDAQ Composite Index.
B) the NYSE Composite Index.
C) the Wilshire 5000 Index.
D) the Value Line Composite Index.
E) the Russell Index.