QBA Practice Exam 3 Global Dynamics

QBA Practice Exam 3 Global Dynamics - costs them just $6.50...

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Number 3 POSTED BY ADMIN ON NOVEMBER 22, 2011  ADD COMMENTS Question #1 Global Dynamics makes an android tablet that is doing pretty well against it’s competitor PieceOStuff.com. In order to better grow their business they felt that they needed to understand what affected the sales of their product. Since the all important Xmas shop- ping season is coming up, Global Dynamics has hired you to take a look at their sales data and figure out how their sales are affected by various things. Global Dynamics Sales Data   Question #2 Global Dynamics so loved your analysis, that they called you back to do more work. They tell you that they have sourced new parts to build their tablet; Taiwan. The screen, motherboard, battery and charger cost $54, $21, $13 and $9 respectively. The packaging
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Unformatted text preview: costs them just $6.50. And the software is free because it is open source. About 45 minutes of labor goes into assembling each tablet. The problem is, Global Dynamics doesn’t know whether to build the tablet here or in Taiwan. Skilled technicians cost $35/hour in Texas, but only $10/hour in Taiwan. But building it in the US will increase sales by 17% over what it would normally sell. Build a model illustrating GD’s business. Question #3 What is the break-even sales for assembly in Taiwan and assembly in Texas? Question #4 What is the optimum combination of location and price for GD to maximize profit?...
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