Students must attend class to have their attendance verified…

Students must attend class to have their attendance verified, to remain in the course, and to have financial aid released to them, if applicable. To verify that you understand the requirements for this course and that you wish to remain in the course, you must answer “yes” to the statement below. Once you have answered “yes” to this statement, your instructor will manually verify your attendance. I have received and read the syllabus and – if applicable – the schedule for this course. I understand the requirements and policies for this course, including required course materials/textbooks, any prerequisite course requirements, technology policies, attendance and make-up work policies, grading policies and procedures (including policies related to late or missed assignments), and academic integrity expectations. After becoming thoroughly familiar with these requirements, I wish to stay in this course; I plan to remain actively engaged in the course, including attending class, submitting work, and meeting deadlines.

The US has a big market for pet toys. The operations manager…

The US has a big market for pet toys. The operations manager of Squeakers, a pet toy manufacturing company is now seriously thinking of adding a new production line for a special type of pet toys. There are two options of production lines that Squeakers can choose: Advanced production line and Standard production line. The former will cost Squeakers $400, 000; and the latter will only cost $300, 000. The market for the special pet toy is believed to be high at $600,000 at 2/3 chance, and low at $300,000 at 1/3 chance. When the market is high, the advanced production line is capable of handling the high figure of $600,000. However, a standard production line needs some expansion at a cost of $150,000. After the expansion, the sales would be $500,000 due to the lost time during the expansion. If the standard production line is not expanded, the sales would be only $400,000. When the market is low, both production lines are able to satisfy all of the demand. What is the optimal decision?