Hello question is attached, thanks Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to coverthe delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow.Cost Driver VolumeActivityProcessing orderLoading truckDelivering merchandiseProcessing invoiceCost DriverNumber of ordersCostDriver VolumeNumber of itemsNumber of ordersNumber of invoices$ 75,000150,00090,00072,000$387,0005,000 orders100,000 items5,000 orders4,000 invoicesTotal overheadTwo of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow.Order valueNumber of ordersNumber of itemsCity Diner Le Chien Chaud$90,000110$75,00052600121,500150Number of invoices Required:a. What would the delivery charge for each customer be under the current policy of 10 percent of order value?b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of deliveringto each customer.Complete this question by entering your answers in the tabs below.Required ARequired BWhat would the delivery charge for each customer be under the current policy of 10 percent of order value?Delivery ChargePer Customer|City DinerLe Chien Chaud< Required ARequired B

a) The delivery charge for each customer can be calculated as follows: For City Diner: Delivery…

Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. Complete this question by entering your answers in the tabs below. Required A Required B What would the delivery charge for each customer be under the current policy of 10 percent of order value? Delivery Charge Per Customer City Diner Le Chien Chaud Required A Required B >

Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. Complete this question by entering your answers in the tabs below. Required A Required B What would the delivery charge for each customer be under the current policy of 10 percent of order value? Delivery Charge Per Customer City Diner Le Chien Chaud Required A Required B >

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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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?
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. MBPF Inc. manufactures prefabricated garages. The manufacturing facility purchases sheet metal that is formed and assembled into finished products—garages. Each garage needs a roof and a base, and both components are punched out of separate metal sheets prior to assembly. Production and demand data for the past eight weeks are shown in Table below. Observe that both production and demand vary from week to week. Now, track the inventory at the end of each week, measured in number of finished garages. Also, construct the inventory build-up diagram. MBPF Inc. manufactures prefabricated garages. The manufacturing facility purchases sheet metal that is formed and assembled into finished products—garages. Each garage needs a roof and a base, and both components are punched out of separate metal sheets prior to assembly. Production and demand data for the past eight weeks are shown in Table below. Observe that both production and demand vary from week to week. Now, track the inventory at…
Unioil produces vegetable based cooking oil and butter spreads. Unioil uses large quantities of crude palm oil (CPO)in its production process as a main raw material. It is April 2021 now and Unioil estimates a need of 25,000 metric tons (MTs)of CPO in September 2021. Current spot price of CPO is RM2200 per MT. You as the procurement manager of Unioil, have the following alternatives to hedge the possible increase in the CPO price by September 2021: a) The analysist predicts that the CPO will be trading at RM3400 per MT in September 2021. b) Forward contracts on CPO for September 2021 delivery is available at RM3600 per MT. C) September 2021 Futures contract on CPO (FCPO) is available and currently trading at RM2280 per MT. (FCPO has a contract specification of 25 metric tons per contract). What would be your net purchase price in September 2021 if the CPO closing price in September 2021 is RM3500 per MT? Justify whether this is a perfect hedge? d) European Options on September…
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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,200 February 1,600 June 2,300 March 1,600 July 1,700 April 1,900 August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,300 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 1,000 units per month. Evaluate this plan by computing the costs for January through August. Part 2 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by…
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,200 February 1,600 June 2,300 March 1,600 July 1,700 April 1,900 August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,300 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 1,000 units per month. Evaluate this plan by computing the costs for January through August. Part 2 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by…
Aggregate demand for a product family is given in the table below for the 4 quarters of 2021. Production cost on regular time is $3 per unit. The inventory cost is $1 per unit per quarter. Demand that cannot be met is a lost sale and accounted for at $9 per unit. When necessary, up to 100 units can be subcontracted at a cost of $5 per unit. Labor fluctuation costs are accounted for by costs of changes in production level: each unit of increase in production is accounted for at $2 per unit of increase and $1 per unit of decrease. The aggregate planning technique being considered is level production. That is, the production level is the same for each quarter. Compute the total annual cost of meeting demand for 2021. (Determine the number of units to produce in each month for level production (Total demand - initial inventory)/4. Then for each month, compute the number of units to be subcontracted, the inventory, and the lost sales). Report as a whole number with no commas.…
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