Da Task 3 Essay
I have reviewed the figures and have made a recommendation based on my findings. It is my determination that given the data, we should purchase new equipment.
Let’s analyze the data. The data below reflects the outcome of reconditioning old equipment, purchasing new equipment, and outsourcing. Below is an insert from POM for Windows an operations management tool used to determine best decisions in business operations.
There are two types of costs to consider, fixed and variable. Based upon the information given the relationship between cost and revenues are linear. In order to use the cost volume and breakeven analysis tool, variable costs must be constant. Here we have constant costs but …show more content…
Problem: Opening new stores can be a very daunting task. Using previous sales trends to develop futuristic sales goals is a process known as forecasting. The first forecasting method used below is using the least squares method. The least squares method of forecasting attempts to project future sales using a straight line regression series. This method uses x and y intercepts and the changes in the series is referred to as the slope. Just as changes in a line can be determined by its slope, so