Q. Radhuni, a traditional bangla restaurant, incurs the following costs: a. Cost of children’s toys given away free with kids’ meals b. Cost of the posters indicating the special “two dishes for $2.50” c. Costs of frozen onion rings and Fishes d. Salaries of the food specialists who create new Biriyani for the restaurant chain e. Cost of “to-go” bags requested by customers who could not finish their meals in the restaurant Required: Just Classify each of the cost items (a–e) as one of the business functions of the value chain

Q. Radhuni, a traditional bangla restaurant, incurs the following costs: a. Cost of children’s toys given away free with kids’ meals b. Cost of the posters indicating the special “two dishes for $2.50” c. Costs of frozen onion rings and Fishes d. Salaries of the food specialists who create new Biriyani for the restaurant chain e. Cost of “to-go” bags requested by customers who could not finish their meals in the restaurant Required: Just Classify each of the cost items (a–e) as one of the business functions of the value chain

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Dominos is planning to introduce two new pizzas (Cauliflower and Calamari). Financial data related to producing these two new pizzas are summarized in the table below. a. If these two new pizzas are sold such that the ratio of Cauliflowers over Calamaris is 4:3, what is the break-even point? b. If the product mix has changed to five Cauliflowers to five Calamaris, what would happen to the break-even point? c. In order to maximize the profit, which product mix should be pushed? d. If both pizzas must go through the same oven and there are only 30,000 oven hours available per period, which product should be pushed to market? Assume that Cauliflower pizza takes 30 minutes and Calamari pizza takes 15 minutes in the oven. Cauliflower Pizza Calamari Pizza Selling Price $10 $12 Variable Costs $5 $10 Fixed Costs $2,000 $600
In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $34 per doll. During the holiday selling season, FTC will sell the dolls for $42 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is uncertain. The normal probability distribution with an average of 60,000 dolls and a standard deviation of 15,000 is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. Besides average profit, what other factors should FTC consider in determining a production quantity?…
In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $34 per doll. During the holiday selling season, FTC will sell the dolls for $42 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. In addition to mean profit, what other factors should FTC consider in…
In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $35 per doll. During the holiday selling season, FTC will sell the dolls for $43 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is uncertain. The normal probability distribution with an average of 60,000 dolls and a standard deviation of 15,000 is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Create a what-if spreadsheet model using formulas that relate the values of production quantity,…
Multipla choice: If the total cost of an item is $180 and its variable cost is $0, this cost can be described as: A. variable. B. semi-variable. C. fixed. D. all the above.
Sapatos Inc. sells a pair of shoes at P200. They have computed fixed cost to be P15,750 with a profit of P1,500 when 150 pairs of shoes are sold. a. Find the variable cost. b. Find the break even quantity.
1. RBF, an emerging singer, is getting ready to cut his first album. The cost of recordingthe CD is Php 500,000 but copies are Php 500 apiece. If the album can be sold forPhp1,500 each, (a) how many CDs must be sold to break even? (b)What is thebreakeven point in dollars?RBF is confident that demand for his album will substantially exceed the break-evenpoint computed above. So, Mikey is contemplating having his album at a classier (andpricier) studio. The cost to record the CD would rise to Php 90,000. However, since thisnew studio works with very high volume, production costs would fall to Php 200 per CD.(c) What is the breakeven point for this new process?(d) Compare this process to the process proposed in the pre SHOW COMPLETE SOLUTION.
Yuki sells rose flower pots. She gets the pots from Lazada. The price he paid for 6 pots is Php4,800.00. To covers costs, Yuki needs to generate a profit margin of 68% for each vase. What percentage mark-up should she add on each pot? If all the pots are sold, what is the total revenue generated? What is the total profit generated? What is the % margin?
Andrea is ordering supplies for summer camp and notices the supplier has a special offer on four items on her list: caps, T-shirts, socks, and shoes. The supplier packaged these items for some special orders, and a number were returned that the supplier would like to move. There are three types of packages, I, II, III. I contains 5 caps, 10 pairs of socks, 2 T-shirts, and 4 pairs of shoes.II contains 5 caps, 6 pairs of socks, 3 T-shirts, and 3 pairs of shoes.III contains 4 caps, 5 pairs of socks, 6 T-shirts, and no shoes. Andrea estimates they will need up to 200 caps, up to 300 pairs of socks, up to 210 T-shirts, and up to 60 pairs of shoes.Based on the special price and their published camp fees, the camp can make a profit of $18 on each package I, $15 on each package II, and $6 on each package III. How many of each type of package should Andrea order to achieve maximum profit? A maximum profit of $______ is possible if Andrea orders 15 of package I and _______of package III, or 20…
4 - Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixedcost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75per unit.a) What is Smithson’s break-even point in units?b) What is the break-even point in dollars?