Evaluation of Responsibility Centers

question 51

Essay

Evaluation of responsibility centers
Shown below are the current-year data for two investment centers of Chelsea Trading,Inc.The total assets utilized by each of these investment centers during the year amount to $1,500,000: (a)Compute the following measures for each investment center: (b)Assume that a $3,000 monthly expenditure for advertising could increase the monthly sales of either investment center by $20,000.Which center should the company advertise to receive the maximum benefit from its advertising expenditure? Center _________.Explain your reasoning:

Understand the implications of the bullwhip effect and methods to estimate its presence within a company.

Distinguish between Vendor Managed Inventory (VMI) and Continuous Replenishment Programs (CRP).

Grasp the roles and responsibilities of designated category leaders.

Learn how demand uncertainty affects manufacturer-retailer relationships and the use of contracts to ensure product availability.

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Definitions:

Oxytocin Receptors

Proteins on the cell surface that bind oxytocin, a hormone involved in social bonding, reproduction, and childbirth.

Monogamous

Refers to a relationship system in which an individual has only one partner during their lifetime or at any one time, as opposed to polygamy.

Promiscuous

Exhibiting varied and indiscriminate sexual behavior without forming lasting bonds or commitments.

Eusocial Species

Species that exhibit an extreme level of social organization, characterized by cooperative brood care, overlapping generations within a colony of adults, and a division of labor into reproductive and non-reproductive groups.