Analyze the potential negative consequences of revenue management in practice? Support your answer with examples.
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Analyze the potential negative consequences of revenue management in practice? Support your answer with examples.
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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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?Explain the role of rate fences, both physical and non-physical, in revenue management systems? Use an example to demonstrate your understanding.As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Soft Drink Wine Coffee Candy Selling Price $1.00 $2.00 $1.00 $0.75 Variable Cost % of Revenue $0.65 25 $0.90 24 $0.30 31 $0.25 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $300.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $300.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $60.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places).
- Using revenue management, determine how many seats should be reserved for premium ticket holders.You are the Operations Manager of the UBSC which has an artificial soccer pitch. The club closes at 4 p.m. on Saturday. A community soccer club approaches you and asks to hire it from 4 p.m. until 6 p.m. If the pitch is open for public use you must provide staff, which will cost $30 per hour. What price should you charge for the hire and what are your business considerations?Submit a single Excel file with formulas within answer cells. Show the formulas for the answer County Hospital contracts for an anesthesiologist’s services for a guaranteed cost of $15,000 a month. For every service the anesthesiologist provides on a procedure, the hospital budgets an incremental $200 toward the anesthesiologist’s salary. Every time the anesthesiologist provides a service, the hospital gains revenue of $1200, which is a sixth of the overall procedure’s revenue. Be sure to make excel do the calculations and indicate any units for the answer. How many procedures would an anesthesiologist have to work on monthly for the hospital to Break Even?
- As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Soft Drink Wine Coffee Candy Selling Price $1.00 $1.75 $1.50 $0.75 Variable Cost $0.70 $1.00 $0.35 $0.35 % of Revenue 24 25 29 22 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $60.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for w servings (round…Explain any five revenue models that organisations could employ to build revenue onlineDescribe the business processes based on the nature of company business for revenue cycle and illustrate the document/system flowchart
- As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far. Item % of Revenue Selling Price $1.20 $2.00 $1.00 $1.00 Variable Cost Soft Drink $0.60 24 25 $0.90 $0.30 Wine Coffee 31 Candy $0.35 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You ostimate labor cost to be $260.00 (5 booths with 2 people each) Even if nothing is sold, your labor cost will be $280.00, so you decide to consider this a fixed cost Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-oven point in dollars for the St. Cloud Theatre Company = $(round your response to two decimal places).As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Soft Drink Wine Coffee Candy Selling Price $1.00 $2.00 $1.50 $1.00 Variable Cost $0.65 $0.90 $0.30 $0.25 % of Revenue 25 26 30 19 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $300.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $300.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $957.69 (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for wine =…As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Soft Drink Wine Coffee Candy Selling Price $1.00 $2.00 $1.00 $0.75 Variable Cost $0.65 $0.90 $0.30 $0.25 % of Revenue 25 24 31 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $300.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $300.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $60.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ 1138.92 (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for wine =…