Week 2 Lab
|Step 1: First Year Costs | |
Question 1: What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
Based on 120 container shipments per year with 10% loads return or 12 containers, this would generate revenues equal to the associated cost.
Looking at the charts below the proposed service would actually lose money as the investment of $255.350 can’t be gained back. Investment cost would be 10 containers X 7 which equals 70. Re-equipping of 5 flatcars X 9 would equal 45. For a total
…show more content…
How long would it take to recoup the investment, assuming that the mushroom traffic continued?
With 60 container shipments per year 10% or return loads or 6 containers would generate revenues equal to the associated cost.
Looking below the service would generate an annual profit of $56,970 with a payback time of approximately 5.1 years.
|Cost Category |Monthly Cost |Annual Cost |
|Inbound transportation |15,500 |186,000 |
|Outbound transportation |7,750 |93,000 |
|Maintenance | |0 |
|Energy |
A | Continue operating the cruise ship in the current area. | 10% | $1.0M | $0.9M | $0.7M | $0.7M | $0.7M | $4.0M |
- The impact on profit in 1966(before taxes) is the Contribution Margin of selling 30 tons.
Provide your own recommendation for an order quantity and note the associated profit projections. Provide a
1. Explain what functions racial beliefs serve for the dominant group according to the functionalist perspective. Conversely, explain what dysfunctions to society are caused by prejudice and discrimination.
Scenario 2A: Operate carrier for 15 years and scrap. Assume a 0% tax rate. Based on a PV analysis where the ship is decommissioned at year
Break-even Dollar Volume = Total Fixed Costs / Contribution Margin = $525,000 / 0.7111 = $738,282.40
of the orders placed and 20% of the delivery expense. Your activity-based approach suggests that
Freight cost was also a problem when the shipping distance expended. Both stoves and ovens were bulky and weighed well over 300 pounds each. Thus,they were very expensive to ship.Bridgewater owned a fleet of trucks which had been expanded from 5 to 10 since the addition of wood ovens to the business. Even though the fleet represented about a $2 million investment. Shipping full – load orders in compnay owned trucks was not uneconomic. But more than hald of all shipments went out in partial loads using common carriers and contract haulers. Considering traffic management.dispathing fleet costs. freignt bills. packing cost and rental charges for public warehouse space. Total shipping costs were running about 17 % of sales in 1985.
a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit.
Costs. The additional cost to the current process is (40,000 – 8,406) = $31,594. That means that during those 20 days the benefits mentioned above would directly offset $8,406 of $40,000 investments. Assuming the same level of supply (16,000 bbls/day), the total investment would be returned in (40,000/8,406)*20=95 days. It is difficult to calculate the financial benefits from the elimination of queues and the lower dependence on seasonal workers, though we must not forget that those are issues
shipments x 500$ 70 nr. shipments x 500$ 220 nr. shipments x 500$ number of units per batch total overhead cost overhead cost / unit cost per unit
Travel time savings are calculated for benefit-cost analysis based on changes in vehicle-hours traveled between base and build, and per-hour cost factors and vehicle occupancies for each combination. Travel time savings as calculated be presented by year, divided by Business Time Cost, Personal Time Cost, and Freight Time Cost. Business Time Cost includes driver time costs for the truck and time costs for business trips by car. Freight Time Cost includes the cost born by shippers and receivers of freight, associated with having freight tied up in transit. In the period from 2020-2049, the project is expected to result in a total cumulative travel time savings of Millions (undiscounted), of which is realized through savings
Through the research and analysis I found working on this project I found this expansion will be profitable. This is largely because higher efficiently that can be obtained with the new system. There is a cost increase at the initial stage
The spreadsheet shows that the new ship would be best utilized on the Tallinn-Helsinki run, where it replace the capacity of three older ships, the Regina Baltica, the Fantaasia and the Vana-Tallinn. The spreadsheet does not factor in the fixed costs associated with each boat, but it is a reasonable assumption that the fixed costs of the three boats that would be sold are going to be higher than the fixed costs associated with the one new boat. It is recommended, therefore to purchase the new ferry as the solver illustrates that the new ferry would deliver greater contribution margin to Tallink than the three older ferries that it would replace.
a. Assuming the most current operational cost levels, what sales must it generate to recoup the above investment?