How might the equipment impact the printing company


Assignment

Scenario Analysis Guidelines

Knowledge of statistics is important foundational knowledge for analyzing data. Equally important is what you can do with that information. An overarching goal of this course is to consider how statistics informs decision making, or data-based decision making. Throughout this course, you will be asked to make decisions and then to consider the impact of those choices. Whether in stock trading, in car sales, or on the production floor, the decisions you make as a business professional should be directly influenced by the data available to you. Careful analysis is the key to data-based decision making.

Each module task below provides a scenario and a list of questions for you to answer using data-based decision making.

- Module Two: Stock Options
- Module Four: Cars Sold
- Module Five: Computer Chips
- Module Six: Vacation Time
- Module Eight: Promotion
- Module Ten: Printing Equipment

Specifically, the following critical elements must be addressed:

I. Main Elements
II. Integration and Application
III. Analysis
IV. Critical Thinking

The owner of a small printing company is considering the purchase of additional printing equipment to expand her business. If the owner expands the business and sales are high, projected profits (minus the cost of the equipment) should be $90,000; if sales are low, projected profits should be $40,000. If the equipment is not purchased, projected profits should be $70,000 if sales are high and $50,000 if sales are low.

1. Are there options other than the purchase of additional equipment that should be considered in making the decision to expand the business?

2. If the owner is optimistic about the company's future sales, should the company expand by purchasing the equipment?

3. Is the owner's optimism or pessimism about sales the only factor that may impact the company's profits?

4. The equipment to be purchased is known in the industry to have a useful life of five years. How might this impact the printing company?

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

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