PRIN OF OPS MGMT W/MYOMLAB&ACCESS BADGE
1st Edition
ISBN: 9781323818510
Author: HEIZER
Publisher: PEARSON C
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Chapter 13, Problem 3VC
Summary Introduction
Case summary:
Many companies including Company OM tried to implement dynamic pricing in their ticketing system. The dynamic pricing based on the popularity and the number of games is as follows:
| Popularity rating of opponent | Number of games | Price |
| Tier I | 3 | $187 |
| Tier II | 3 | $170 |
| Tier III | 4 | $85 |
| Tier IV | 6 | $75 |
| Tier V | 14 | $60 |
| Tier VI | 9 | $44 |
| Tier VII | 6 | $40 |
| Average | 45 | $68 |
Company OM has a capable revenue management technique. It follows three different types of pricing strategy, which are the setting price during the beginning of the season and do not change throughout the season, setting a price based on the popularity of an opponent, and pricing tickets based on the projected demand and changing based on the actual market demand.
Person P and Person D of Company OM use different tools to change the seat price based on the demand. Company OM would provide offer prices and seats at a prime rate in the existing games.
To determine: The concern of the company while using the dynamic pricing with frequent price changes.
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A product at the Jennings Company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. Last year, 17,500 units were produced and sold. The selling price is $22 per unit, the variable cost is $18 per unit, and the fixed cost is $80,000.a. What is the break-even quantity for this product? Use both graphic and algebraic approaches to get your answer.b. If sales were not expected to increase, by how much would Jennings have to reduce their variable cost to break even?c. Jennings believes that a $1 reduction in price will increase sales by 50 percent. Is this enough for Jennings to break even? If not, by how much would sales have to increase?d. Jennings is considering ways to either stimulate sales volume or decrease variable cost. Management believes that either sales can be increased by 30 percent or that variable cost can be reduced to 85 percent of its current level. Which alternative leads to higher contributions to profits, assuming that each is…
Chapter 13 Solutions
PRIN OF OPS MGMT W/MYOMLAB&ACCESS BADGE
Ch. 13 - Make the case for, and then against, this pricing...Ch. 13 - Prob. 1DQCh. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQ
Ch. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Consuelo Chua, Inc., is a disk drive manufacturer...Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Southeast Soda Pop, Inc., has a new fruit drink...Ch. 13 - Ram Roys firm has developed the following supply,...Ch. 13 - Jerusalem Medical Ltd., an Israeli producer of...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Dwayne Cole, owner of a Florida firm that...Ch. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Evaluate the various configurations of operating...Ch. 13 - Prob. 2CSCh. 13 - After researching revenue (yield) management in...Ch. 13 - The Magic used its original pricing systems of...Ch. 13 - Prob. 3VC
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