10x + 30 y <=200 x + y >=10 10. Set Y axis as money Draw a horizontal line at $1000 Starting from zero, draw a line increasing a $20 per table up until it touches the $1000 line. This represents the number of round table bought. Draw a second line downwards, starting at x=0 and descending in $25 units as an accumulation on the first line. This represents the number of rectangular tables bought.
1. a. The cost related to processing (i.e., warehousing) a carton through the facility $54 ($4,320,000/80,000) b. The cost of entering an electronic and a manual customer order 840,000/(16*1500*60)=.5833333 $/productive minute $3.50 for an electronic (.5833333*6) $5.25 + 2.625*(number of lines in order) was the cost of a manual ($0.5833333*9)+($0.5833333*4.5)*number of lines per order c. The cost of shipping a carton on commercial carriers $6 per carton ($450000/75000) d. The cost per hour for desktop deliveries. (200000+250000)/(4*1500) = $75/hour * What are the advantages of using the per hour cost driver vs. other potential drivers such as cost/carton or cost per delivery? Variation in shipping costs relates to costs associated with shipping time (i.e.
Economies of scale can be enjoyed by any size firm expanding its scale of operation. It is important to companies such as McDonald’s and GBK because firstly, a large business can pass on lower costs to customers through lower prices and increase its share of a market. Secondly, a business could choose to maintain its current price for its product and accept higher profit margins. 3. a) What are marketing economies of scale? As a firm grows the average cost of advertising per unit will fall, leading to lower average costs.
Truckload volumes would be more easily gathered to and from distribution centers, lowering transfer and customer freight costs. However, the effect of using third party warehousing and transportation on transfer and customer freight costs is less obvious. 2- What impact would warehouse consolidation have on inventory carrying costs, customer service levels and order fill rate? Inventory carrying Costs would be reduced with better utilization of facilities and less duplication of effort. The company operates two warehouses in Newark, NJ and Los Angeles, CA.
|Planning Budget | |For the Month Ended January 31 | | | | |Budgeted meals served (q) | 1,500 | | | | |Revenue ($12q) |$18,000 | |Expenses: | | | Cost of ingredients ($3.50q) |5,250 | | Wages ($7,500) |7,500 | | Utilities ($600 + $0.20q) |900 | | Rent ($2,500) | 2,500 | |Total expense | 16,150 | |Net operating income |$ 1,850 | | | | Part (b) Solution (Learning Objective
Assignment 1: Making Decisions Based on Demand and Forecasting ECO 550 – Managerial Economics and Globalization Thursdays (6:00-10:00PM) November 24, 2013 The Pizza Company is considering entering the marketplace in your community. Using this output, we can derive estimated regression line for demand for pizza as; determine that Price (P) = $175, Competitor Price (CP) = $250, Advertisement (A) = $325, Income (I) = $95 Q= 128,832.2 – 19,876 * (P) + 15,467.94 * (CP) + 0.260701 * (A) + 8.780403 * (I) Q= 128,832.2 – 19,876 * 175 + 15,467.64 * 250 + 0.260701 * 325 + 8.780403 * 95 Q= 108,956.2 * 15,642.64 * 250.26 * 333.78 * 95 Q= 518,361.1 Coefficient of determination (or R- square) = 0.977914223. This means 97.79% of the variation
The differences over cost driver between LG and TORK are mainly come from the followings, please see below: Design: LG uses the plastic parts which the weight is lesser than Tork steel’s part and also the cost are cheaper. Moreover, the assembled times of LG are faster than Tork along with the wages rate of LG are lower. In conclusion, LG are cheaper and faster than Tork Geography: The freight costs of LG are significantly higher due to requiring ocean freight and shipping to distribution centers, whereas Tork relies on trucks and trains. However, LG enjoys a large wage advantage in Korea. Facility: LG has higher manufacturing volume based on they has an advantage from scale of economies by purchasing lots of material and got the discount on the prices.
3 day food log Date:27/09/13 | Description of food | Weight(g) | Calories and energy | Carbohydrate | Protein | Fat(including saturates) | Fibre | Salt | Timing | Preparation method/processing method | Activity including duration | Breakfast | Ham pineapple Pizza | 374g | 975kj,232kcal | 30.8g | 9.8g | 7.2g2.6g | 2.5g | 1.0g | 7:00am | packaged | 8hours of Sleep. Walked 15Minutes to & fro from School. | Lunch | Whole meal sliced bread. | 132g | 1,300kj320kcal | 51.2g | 12.1 | 3.6g0.4g | 8.4g | 1.2g | 1:00pm | packaged | Walk to and fro to 3 lessons in school. | Dinner | Ham and tomato salad | 100g | 605KJ143Kcal | 21.8g | 9.6g | 1.9g0.5g | 2.2g | 1.01g | 6:00pm | packaged | Climbed the school
(five points)60+40+30 = 130 300-130 = 170 170/130 = 131%Problem 2 - Better Food Company recently acquired an olive oil processing company that has an annual capacity of 2,000,000 liters and that processed and sold 1,400,000 liters last year at a market price of $4 per liter. The purpose of the acquisition was to furnish oil for the cooking division. The cooking division needs 800,000 liters of oil per year. It has been purchasing oil from suppliers at the market price. Production costs at capacity of the olive oil company, now a division, are as follows: Direct materials per liter | $1.00 | Direct processing labor | 0.50 | Variable processing overhead | 0.24 | Fixed processing overhead
$80, 000 $80,000 BE = $10-$5 = $5 = 16,000 bags b. Calculate the profit or loss on 12,000 bags and on 25,000 bags. Total Variable Fixed Costs Total Costs Total Revenue Operating Income Costs (TVC) (FC) (TC) (TR) (loss) (12,000 x $5) (12,000 x $10) $60,000 $80,000 $140,000 $120,000 ($20,000) (25,000 x $5) (25,000 x $10) $125,000 $80,000 $205,000 $250,000 $45,000 c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? Why does the degree of operating leverage change as the quantity sold increases? 20,000($10 - $5) $100,000 DOL= 20,000($10-$5) - $80,000 = $20,000 = 5 25,000($10 - $5) $125,000 DOL = 25,000($10-$5)- $80,000 = $45,000 = 2.8 Because the father away you get from the breakeven point the smaller the percentages is going to be that is