Practice Midterm 02

Practice Midterm 02 - PART I Break Even OSCAR MAYER John Q....

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1 PART I – Break Even O SCAR M AYER John Q. Analyst, a recent Harvard MBA, is employed by Oscar Mayer in their hot dog division. His boss, Jennifer Knowsalot, assigned him the task of producing the financial analysis for launching or not launching the Oscar Mayer Chicken Hot Dog. Like most Harvard MBA’s, John Analyst knows many facts, but is not very good at analysis. He is meeting with his boss to present his numbers in just 3 hours, and he still has not begun his analysis. He has turned to you to help him save his job. John talked to all of the different divisions at Oscar Mayer and came up with the following information. The R&D people say that they have invested $65,000 over the last year coming up with a recipe for a chicken hotdog that tastes good. In addition, R&D and production together spent $45,000 experimenting with and modifying some of their equipment to process chickens, and now have a machine that can be moved into full-scale production. In order to move into full-scale production, an
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Practice Midterm 02 - PART I Break Even OSCAR MAYER John Q....

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