Final Exam Practice Questions Mgmt 324

Final Exam Practice Questions Mgmt 324 - Final Exam...

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Final Exam Practice Questions on EVC with Updated Solution Explanations Wabash National Corporation currently manufactures a product X in an antiquated factory in Lafayette. Normally, the company sells 30,000,000 units of X per year. The company spends $2.5 million per year in machine maintenance. Operation Lab at Purdue offers a 3-year service contract for factory machinery that they claim will cut the above maintenance costs in half. They also claim that the improved performance of well-maintained machines will result a better product that can be sold at $0.03 more per unit. Their maintenance program requires that machine operators to complete a 1-month training course at Purdue that will cost Wabash National Corporation $1 million in supporting this training alone (note: this cost is not included in the purchase price, and the training is required at the beginning of each 3-year contract period). Operation Lab estimates that it will cost Operation Lab $3 million to implement the service contract. 1)
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This document was uploaded on 03/31/2012.

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Final Exam Practice Questions Mgmt 324 - Final Exam...

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