Delectation Delicatessen Essay

QUESTION 4: Kai decides to add color and keep his price the same. This will increase variable costs by $0.40 per issue. What will be the new unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable costs?

The calculation has proven that contribution margin of Model S is higher than Model LX. In conclusion, all resources should be allocated to produce Model S up to its maximum production capacity.

11. Prepare a table that illustrates the percentage change in costs between the volume-based system and the strategic activity-based system.

Martinez Company’s relevant range of Production is 7,500 to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan.

• Capacity would not increase significantly; it would increase by 20,000 immediately, and could be brought up to 48,000 in twelve months

Solely taking a look at the graph, to accommodate future demand for growth I would recommend ocean transportation to move our products from the new facility in China. As we expect demand to grow by 10 percent annually over the next five years, it will be most beneficial to utilize ocean transportation as projected total costs for air becomes higher than ocean above the trade off point of 1,904,761.9 POUNDS. For example, total projected costs were calculated to be at $587,156 for air versus $630,080 for ocean at the end of 5 years. Extrapolate the graph even further into the future, with the expectation of even more growth,

|Price of Belgium cocoa beans|Quantity of Belgium cocoa beans |Quantity of Belgium cocoa beans |Total Demanded |

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).

14) Consider the following transshipment problem. The shipping cost per unit between nodes 1 and 2 is $10, while the shipping cost per unit between nodes 2 and 3 is $12. What is the objective function?

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?

production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost

1. Relative to the U.S. distribution network, calculate the cost associated with running the existing system. Assume that 40 percent of the volume arrives in Seattle and 60 percent in Los Angeles and the port processing fee for federal processing at both locations is $5.00 per CBM. Assume that everything is transferred to the Kansas City distribution center by rail, where it is unloaded and quality checked. Assume that all volume is then transferred by truck to the nine existing warehouses in the United States.

(Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train cars? Then, proceed to compute number of passengers =?

PART A – Linear Programming 1 a) Linear Programing Model Decision Variables: Let x = acres of watermelon Let y = acres of cantaloupe Objective Function: Maximize Z = 390x + 1300y – 5(20x + 15y) + 5(2x + 2.5y) = 270x + 300y – 100x + 75y + 10x + 12.5y = 256x + 284.5y where Z = total profit 390x = profit from watermelons 1300y = profit from cantaloupe 5(20x + 15y) = cost of fertilizer 5(2x + 2.5y) = cost of labour Identification of Constants: Maximize Z = 256x + 284.5y