Prof. Liz Durango-Cohen
The data needed for this problem set is contained in worksheet “MBA_504_MAC_502_Problem_Set_#8_F14.xls”
Problem 1: Writer’s Edge is a seller of fine fountain pens. The company has found that, in spite of the growth in online buying, its catalog business is still quite strong. With the holiday season coming Writer’s Edge is planning to run a new direct mail campaign. Relevant information includes:
The cost of printing the holiday season catalog is $30,000 in fixed costs plus $0.23 per catalog.
The cost of mailing each catalog (postage + cost of purchasing names and addresses of potential customers from a list vendor) is $0.39.
Each catalog will…show more content…
In addition, you may be transferred to another post in three to six months, so you may have to pass on the responsibility to a successor before too long.
It is 6:00 a.m. Monday morning. You have three hours left at the city headquarters until you leave to begin two weeks of fieldwork in the villages without computer access. The initial order must be placed by next Friday, so you will have to take care of procuring a check from the finance officer and placing the order before you leave.
Other team members are beginning to arrive, but the office is still quiet. Everything else on your plate can wait until you return. Yet, something else could pop up at any moment, so you have to work quickly. You don 't have the latest population or stock figures yet, but the team member who has them will arrive at 8:30 a.m.
Design a spreadsheet that will enable you to request the required funds from your team’s finance officer, order supplies from the home office, and ensure dissemination of appropriate quantities to each village. Your final order to the home office should specify the number of packages required of each item.
a. The population figures show that there are 3,000 children, 2,500 teenagers, 500 seniors, and 9000 other adults in the population. In there are no stocks on hand, what amount would be required for ordering supplies? b. Using the parameters in (a), construct a graph showing how the amount required for the order would vary if the unit cost of