Supply For A Continuous Supply

Nonetheless, there are also cons of course, which could

Nonetheless, upon close examination of the production line, it was concluded that there were a lot of disadvantages associated with the outsourcing of production some of which includes and is not limited to:

Some costs are expensive: freight cost from China, inventory (lead-time increase because of shipping), and quality control (testing shipped products from China in the US require some cost; time and money)

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:

2. What is the total cost? How much of the total cost are labor costs? Capital costs?

From the first page of the case we have an estimate of $11 million cost of lost sales and backorders and $10 million associated with having too much of the wrong inventory. These costs are stated as being a conservative estimate.

Based on the estimated sales, costs involved in the AssetsGuard product launch and annual claims settlement costs the following profitability and monthly premium calculations resulted in $18.74 monthly premium price:

Under the current indirect cost allocation scheme (Exhibit 1) the Dialysis Center’s Revenues and Direct Costs are as follows: total revenue is $2,700,000, direct expenses are $2,100,000, the contribution margin is $600,000, and their percent of revenues is 22.2%. Their indirect costs are as follows: facilities cost is $300,000, general overhead is $270,000, and total overhead is $570,000. This leaves the Dialysis Center with $30,000 in net profit and 1.1% in percent of revenues. Additionally, square footage is allocated at $15.00 per square foot on an aggregated basis. Lastly, their general overhead costs are set at 10% of their total revenues.

The amount of extra sales that would be required to cover this cost of 300,000 would be

Current funds allocated to advertising and sales promotion is 3% of net sales ($80,000,000) = $360,000

The total amount of the costs which should be matched with Revenues for 2003 is $71,129. This is done by taking the capitalization amount shown above (217,520), dividing it by the 200,000 unit estimate, and multiplying it by the units that were sold in 2003. The calculation is shown below.

* Refer sheet “25000 Sales” for cost incurred and Gain/loss for AIFS for different scenarios and actual sales volume of 25000.

Using manufacturing cost of $148.12 the product would have to sell for at least $207.

considerably, from 8.3 cents to 21.5 cents. In other words, the equivalent tariff is 21.5 - 8.3 = 13.2 cents per pound, or a 159% tariff. The graph below - which is not to scale - shows how one can illustrate this import quota as an equivalent tariff._

Bob O’Connors sentía que la valorización de US$ 6 millones que hizo Walnut para su empresa RBS era baja, pues desde su punto de vista un precio más real era en torno a los US$ 8 – 10 millones.