Case A Retail Dry Cleaning Shop

Owens & Minor is a distributor of surgical and medical supplies to hospitals and other health care facilities. Due to changing demand from customers, the company is facing increased operating costs, which has resulted in lower profit margins and even losses. In 1993, O&M recorded an $18 million profit, which was reduced to a loss of $11 million in 1995. The entire industry is experiencing similar difficulties. In an effort to resume profitability, O&M is evaluating alternatives to “cost-plus pricing”. Cost-plus pricing does not reflect the true cost of the services provided by O&M. Customers are demanding more of O&M while

Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Here is the first month's scenario--you order the same number (and the same variety) of ice creams each day from the ice cream suppliers, and your ice creams are always marked at $1.50 each. However, you notice that there are days when ice creams remain unsold but other days when there are not enough ice creams for the number of customers.

Using the data and your own economic knowledge, assess the case for financing universities mainly through charging fees to their students.

Thus we get 6+2*(2+1+2)+1=17 min of valuable time for two orders. For three orders we get 6+3*(2+1+2)+1=22 min of valuable time. A further assumption is that the costs of my and my roommate’s time are L per hour, then the average costs for the first dozen are: (12/60)*L= 0,2L, for the second dozen: ((17/60)*L)/2=0,142L, for the third dozen: ((22/60)*L)/3=0,122. We see that the costs for each the second and the third dozens are less than for the first. Thus, we can give discount on orders for more than one dozen. These can be for the first dozen up to (0,2-0.141)*L=0.058L for the second dozen, and (0,2-0,122)*L=0,078L for the third order.

B. 1. The impact of costs on the decision to move forward with the new Maui Sandal line is as follows: As the production continues, the hours needed for each batch, or individual pair, will begin to decrease. By continuing to produce this line the total labor costs will continue to decrease, but most likely, at a slower rate as more sandals are produced. This data can help the company decide employment levels, capacity, costs, and their pricing of this particular merchandise in the open market. The company predicts that it will take 1,000 labor hours for production to complete for the first batch, with 50 total batches between month 1 and month 4.

To find the break-even point for napkins, you use the same formula. The fixed cost is still $420,000.00. The selling price of napkins is $7.00. The variable cost is $4.50. $7.00 minus $4.50 is $2.50. So then you take $420,000.00 and divide it by $2.50 to find the breaking point of $168,000.00. The company will have to sell $168,000.00 to break even in sales. The margin for safety for napkins is -$48,000.00. This is found by subtracting the actual or expected cost of $120,000.00 by the break-even point of $168,000.00. You can cut sales by $48,000.00 and not sustain a loss.

13. Sunglass Hut purchases a pair of Tiffany sunglasses from a wholesaler for $180 and sells it for $300. If the wholesaler increases its price by 20%, to the nearest dollar, what should Sunglass Hut charge in order to maintain the same percent margin?

7) NCC is considering the purchase of two new dryers(each costs $10000, the cost includes installation cost) and conversion of up to 10 dry berry holding bins (each costs $2000, that includes labor and material cost) so that they can hold water-harvested or dry berries. What are your recommendations? Assume that drivers are paid $12 per hour.

If Marlene Herbert were to discontinue place mats, he would miss $270,000 that will go toward Mendel paper company fixed cost. The company currently has a plant overhead that is estimated at $420,000 for the quarter. In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000. This draws the company to a total fixed cost of $538,000. If Marlene Herbert were to discontinue the second highest contributor to the fixed cost, he would need to increase the volume of computer paper and lower material cost to help pull the contribution margin of the lowest product up to help support the lost of a whole product line.

Your paper should be between 1750 and 2500 words, in APA format and structured as follows:

In this way, the Fed manages price inflation in the economy. So bonds affect the U.S. economy by determining interest rates. This affects the amount of liquidity. This determines how easy or difficult it is to buy things on credit, take out loans for cars, houses or education, and expand businesses. In other words, bonds affect everything in the economy. Treasury bonds impact the economy by providing extra spending money for the government and consumers. This is because Treasury bonds are essentially a loan to the government that is usually purchased by domestic consumers. However, for a variety of reasons, foreign governments have been purchasing a larger percentage of Treasury bonds, in effect providing the U.S. government with a loan. This allows the government to spend more, which stimulates the economy. Treasury bonds also help the consumer. When there is a great demand for bonds, it lowers the interest rate.

Using the sample data given in Table 2-20, make a recommendation for how many units of each style Wally should make during the initial phase of production. Assume that all of the 10 styles in the sample problem are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. Ignore price differences among styles in your initial analysis.

(1.98 is also reasonable select. Since there is no brand image or loyal customer, it's not big problem to price very low as long as defend VC. Profit is only $4000, but as long as the business continues it's better than nothing.)

After making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1

Given underutilized capacity in service, I do not understand why 1 am charged full price. It doesn 't make sense for the service department to mark up on projects undertaken for new and used car departments within our own dealership. 1 can 't see how we can make profits when one part of our company sells to another." Robbins added, "When I am unsure of the actual retail value, 1 tend to wholesale rather than take a risk of a negative margin at retail. However, when I do this, we may be losing as an organization as a whole." "I agree with Amy on this," stated Walker, "and I have the same problem with dealer-installed options. When 1 am charged full price for options, I have no incentive to try to sell these items." . "Hold on," said the service department manager. "1 make my profit by selling service, and these are the prices I would charge for outside work. To sell service for a lower price inside defeats the purpose of this profit center idea. But 1 do have a problem with getting full price for parts. The demand for parts is derived almost completely from service, and we are dependent on parts for quick delivery for