Costs and Location

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

about $1000 for our multi­featured. We thought that cutting costs would help increase profits for

The projected costs in 2004 (column 3) are calculated by dividing the actual costs for the first five months of 2004 (column 2) by the percent of 2003 costs that occurred in the first five months (column 1). For example, Atlanta’s actual 2004 costs of $40,228 divided by 2003’s 22.88% yields projected 2004 costs of approximately $175,822.

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

a) Postal materials—numerous suppliers of necessary postal and packaging materials. Switching costs are not high. The postal materials suppliers have low bargaining power.

c. Explain how the location of each curve graphed in question 7b would be altered if (1) total fixed cost had been $100

Question 2: Assume all conditions in question 1 hold, except that Low’s supplier now offers a quantity discount in the form of absorbing all or part of Low’s order processing costs. For orders of 750 or more kegs of nails, the supplier will absorb all the order

making material costs similar for Tork and LG, while maintaining fixed cost and labor as they are. We

In our excel model we tried to determine the no: of units/TEU at which the cost of the Option 2 (Zaragoza) is lower than cost of option 1 (Rotterdam) by varying the number of units/TEU (J 13 cell in excel model) and finding the influx point at which the cost difference becomes positive (E 69 cell in excel model).

3) Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?

The chemical is packed and shipped in drums costing $1450 apiece. The company has been running for two years (730 days) and has shown a seasonal trend in sales. In two years’ time a new

Packaging and labeling of products are other key essential parts of the Cooper Company logistics to provide satisfaction to their customers. Accurate packaging and labeling can have a direct impact on the Cooper Company logistical productivity and efficiency (Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. p.251. 2013). The company’s packaging accounts differs for each channel this entail the retail accounts 80 percent of the packaging cost and Foodservice of 20 percent (Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. p.465. 2013). “The retail channel requires “labeling” to accrue the company a 2,000,000 expense includes materials, labor, and depreciation of the machine.

8. I would like to remove allocated costs and fixed overheads and see what would be the variable cost. If this is done, you can see that the variable cost hovers around 7 FF. ( Not many of you have done this)

Variable Cost per Unit = ( $59,000 − $38,000 ) ÷ ( 3,000 − 1,250 ) = $12 per unit

Min 3.2x1 + 2.2x2 + 4.2x3 + 3.9x4 + 1.2x5 + 0.3x6 + 2.1x7 + 3.1x8 + 4.4x9 + 2.7x10 + 4.7x11 + 3.4x12 + 2.1x13 + 2.5x14 + 6.0x15 + 5.2x16 + 5.4x17 + 4.5x18 + 6.0x19 + 3.3x20 + 2.7x21 + 5.4x22 + 3.3x23 + 2.4x24 + 0.3x25 +0.7x26 + 3.5x27