Audio Disks Will Be Opening Outlets in the Greater Phoenix

question 27

Essay

Audio Disks will be opening outlets in the greater Phoenix area. The estimated sales at each store are dependent not only on the store location, but on the number of sales personnel, as presented in the table below ($000/year). Each store requires at least 2 sales people, and a pool of 9 salespeople is available. $$\begin{array} { c | c c c c } & { \text { Staff Size } } \\& 2 & 3 & 4 & 5 \\\hline \text { Store 1 } & 60 & 85 & 90 & 100 \\\text { Store 2 } & 105 & 120 & 130 & 150 \\\text { Store 3 } & 120 & 145 & 160 & 175\end{array}$$
a.What would the states be in the dynamic programming formulation?
b.Draw the network that represents the dynamic programming formulation.
c.Given the above network, solve the sales personnel allocation problem by finding the longest path.

Understand the creation and use of pro forma financial statements in business analysis.

Recognize the relevance of earnings numbers in estimating sustainable long-term cash flows.

Learn the differences in valuation approaches and their respective implications for investors and analysts.

Acknowledge the relationship between cost of capital, earnings, and company valuation.

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Definitions:

Sales

The total income generated from goods or services sold by a company before any costs or expenses are deducted.

Stockholders' Equity

The residual interest or ownership of a company's shareholders after all liabilities have been deducted from total assets.

Net Operating Income

The income generated from normal business operations after subtracting operating expenses from operating revenues but before taxes and interest.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment or product, aiding in profitability analysis.