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NEW QUESTION: 1
The Operations department focuses on providing goods and services to the customer in an efficient, effetive, timely manner. Which of the following is NOT a responsibility of Operations?
A. Productivity
B. Cost
C. Distribution channel
D. Quality
Answer: C

NEW QUESTION: 2
The following Business Case is constructed properly.
"During 2009 the commercial loan division experienced a 2.7% default rate versus a target of less than .5%. This costs the bank in excess of $250,000 quarterly."
A. True
B. False
Answer: A

NEW QUESTION: 3
A fixed-price-plus-incentive-fee (FPI) contract has a target cost of $130,000, a target profit of $15,000, a target price of $145,000, a ceiling price of $160,000, and a share ratio of
80/20. The actual cost of the project was $150,000. How much profit does the seller make?
A. $5,000
B. $10,000
C. $15,000
D. $0
Answer: B
Explanation:
Profit/Loss amount = Target Cost Actual Cost = 130000 150000 = -20000. Incentive Amount = 20% of (-20000) = -4000. Profit Amount = Target Profit + Incentive Amount = 15000 4000 = 11000. Total price = Actual Cost + Profit Amount = 150000 + 11000 = 161000 But there is a ceiling, so modified Total Price is 160000. So the Seller gets only 10000 (=160000 150000). Hence answer is A.

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