Use the Information Below to Answer the Following Question(s) We Assume That the Production (Demand)volume Is Normally Distributed with the Following

question 2

Multiple Choice

Use the information below to answer the following question(s) .
Consider the following spreadsheet for an outsourcing decision model.
$$\begin{array} { | l | l | l | } \hline 1 & \ { \text { A } } & \text { B } \\\hline 2 & \text { Outsourcing Decision Model } & \\\hline 3 & \text { Data } & \\\hline 4 & & \\\hline 5 & \text { Manufactured in-house } & \\\hline 6 & \text { Fixed cost } & \$ 60,000 \\\hline 7 & \text { Unit variable cost } & \$ 130 \\\hline 8 & & \\\hline 9 & \text { Purchased from supplier } & \\\hline 10 & \text { Unit cost } & \$ 180 \\\hline 11 & & \\\hline 12 & \text { Demand volume } & \$ 1,600 \\\hline 13 & & \\\hline 14 & \text { Model } & \\\hline 15 & & \\\hline 16 & \text { Total manufacturing cost } & \\\hline 17 & \text { Total purchased cost } & \\\hline 18 & & \\\hline 19 & \text { Difference } & \\\hline 20 & \text { Decision } & \\\hline\end{array}$$
We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100.For the unit cost, select the triangular distribution.It has a minimum value of $150, most likely value of $165, and a maximum value of $190.The number of trials per simulation is equal to 5,000 at a Sim.Random Seed of 1.Run the simulation and answer the following question(s) using the Risk Solver Platform.
-What is the value of mean absolute deviation obtained from the simulation results?

• A)$10,893
• B)$3,476
• C)$7,412
• D)$5,885

Comprehend the importance of cash flow information for decision-making by internal and external users.

Understand how cash flows affect financial ratios and business decisions.

Acknowledge the disclosure of cash and cash equivalents and their impact on financial analysis.

Understand the key elements and effectiveness of nonverbal communication.

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Definitions:

Cultures

The shared values, beliefs, norms, and practices that characterize a group of people or an organization.

Decisive

Being characterized by or displaying no or little hesitation; resolute in making decisions.

Culture Clusters

Groupings of cultures that share similar characteristics and are classified together based on geographical, linguistic, or cultural similarities.

Similar Set

A group of objects, ideas, or entities that share common characteristics or attributes.