(a) What is the contribution margin from this special offer? (b) Should the Bikers’ Club offer be accepted or rejected?
Q: i. Draw a decision tree and advise which course of action generates the greatest expected profit.…
A: NOTE: We are allowed to do one question with its three sub-parts. Expected value is one of the most…
Q: How difficult is it to control inventory items with a short shelf life? What will it take to…
A: Inventory management refers to the process of sourcing, storing, and selling inventory (finished and…
Q: List two benefits of outsourcing to a company during the development of an IT/IS project. Define…
A: By contracting with an outside party to do an otherwise in-house task or provide an entirely new…
Q: A company is reviewing its policy of putting each sub-assembly bought in from outside through a…
A: Production is the process in which inputs are combined to have the required output. It includes a…
Q: Ana owns a consulting business that helps software companies market their services to school…
A: Given: fixed cost 7000 SP 4635.7 variable cost 1676.6
Q: o check out at the front desk. • Activity 1: The staff member at the front desk inquires about…
A: Formula: Capacity of activity (guests per hour) = 60/service time taken for 1 guest So, Capacity…
Q: Daily high temperatures in St. Louis for the last week were as follows: 92, 94, 93, 92, 97,…
A: Using 3- day moving average Day Temperature calculation 3-day moving average 1 92 2 94…
Q: An assembly line made up of 10 operators currently operates with the following standard minute times…
A: Given data
Q: The value of the forecast is _________patients (round your response to two decimal places).
A: Forecast = sum of the product of weights and actual no.of patients/sum of weights
Q: A foundry receives an order for four custom-designed castings. The customer will pay $30,000 for…
A:
Q: The following is given: $8.00/unit $4.00/unit $56,000 a) Based on the given information, the…
A: Break even point is calculate fixed cost divided by contribution margin Formula for Break even…
Q: Use the assignment method to determine the maximize profit that can be generated with optimal…
A: For finding the maximised profit, the matrix will be converted into minimization problem.
Q: Gross requirements Scheduled receipts Inventory on hand Net requirements Planned order receipts…
A: Ans) Concept: 1) We need to order in multiples of 50, when there is Net Requirements or Gross…
Q: A manufacturer of Protex soap must determine whether or not to expand his productive capacity. His…
A: Find the Given details below: Given details: Do not Expand Expand High Demand 5000 7500…
Q: A group is planning to back the production of a new musical at Lusaka Playhouse. It would cost K100…
A: NOTE: We are allowed to do one question only. Decision trees are a popular and powerful way to…
Q: Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last…
A: 2 month moving average is a forecasting model which considering forecast as the average value of…
Q: In an assembly process involving six distinct operations, it is necessary to produce 275 units per…
A: Bottleneck operation is the one which takes maximum time to process 1 unit in a given time. The…
Q: The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand…
A:
Q: How is the organisation of Sizanani Community funded?
A: Sizanani's response to the community's concerns for OVC is thorough. The program aims to provide…
Q: You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks,…
A: Yield% = Dividned Income Investment×100Dividend Income = Yield%×investment100 Let S be the total…
Q: Consider an expensive part with a reliability of 96.6%. If the part fails, it will cost the firm…
A: Note: - As we can answer up to three subparts, we will first question and its subparts. If an answer…
Q: Give a summary of the many tools that may be used to improve project collaboration. Please provide…
A: Project collaboration tools generally refers to those tools that integrate with characteristics that…
Q: b. What is the critical path?
A: A network diagram related to the project shows the sequence of the task that is performed to…
Q: ght increase EVA quickl
A: Entrepreneurs seeking a way to gauge the effectiveness of their company frequently look to their…
Q: How do we decide which initiatives to undertake for project selection?
A: Introduction: Similar to the project's planning, implementation, and decision-making, the selection…
Q: Which of the following statements about just-in-time deliveries is/are true? select one or more: a.…
A: In Just-in-Time philosophy, the material is pulled through the system instead of being pushed. This…
Q: What is the objective function?
A: Linear programming is a mathematical technique that is also used in operations management…
Q: a) The break-even point in units for oven type A = _______ units (round your response to the…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: What is one thing you know about Operations Management and one thing you would like to learn
A: Operation management often called OM is nothing but the field of the business that is generally…
Q: a. What is the alternative that provides the factory the greatest expected value and what is the EV…
A: Here, from the table, we could see that there are three approaches, Increased capacity, used…
Q: Tommy Hilfiger is currently considering to source certain textile goods, Tommy Jeans, from Mexico.…
A: Maximum allowable production cost can be determine by comparing the total cost for each option. By…
Q: Give an explanation of risk management ideas.
A: A risk management strategy is a planned method of tackling hazards that may be applied to businesses…
Q: Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are…
A: Variable Cost is given as $4 per unit Sales =Number of units sold × Per unit price =10000…
Q: Use this objective coefficient range information to answer parts (b) and (c). The objective…
A: Linear programming is a mathematical technique that is commonly used in operations management…
Q: What are the ways to reduce inventory levels, explain with examples?
A: Inventory management is the management in which raw materials and finished products are stored and…
Q: two different manufacturing processes are being considered for making a new product. the first…
A: Fixed cost = 50,000 Variable cost = 700 For process 1 equation is Let assume number of unit = x…
Q: A group is planning to back the production of a new musical at Lusaka Playhouse. It would cost K100…
A: One can calculate the expected value for a decision tree by multiplying each node's probability and…
Q: GENERATE THE DECISION VARIABLE SOLUTION AND GENERATE A SENSITIVITY REPORT CASE 1. Julia's Food Booth…
A: Linear programming is a mathematical technique that is commonly used in operations management…
Q: Question 4 are those ethical principles that we live by and believe. These are important blueprints…
A: A. Norms: The term "norm" refers to something that is common, normal, standard, or anticipated.…
Q: a. Formulate an LP model for this problem. b. Implement your model in a spreadsheet and solve it.…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: The term for safety time added to chains other than the critical chain is: Feeding buffer, first…
A: Feeding Buffer: It is a safety added to the places where chains of tasks which are non critical…
Q: The probabilities associate with the states of nature are 0.3 for S, 0.45 for M, an 0.25 for G. a.…
A: Mathematic models of decision-making help businesses take the correct decision for their operational…
Q: 3. The cost of carrying one unit in inventory for a specified period of time, usually one year, is…
A: Carrying cost of inventory is holding cost which refers to the total cost of holding inventory for…
Q: time-series trend equation is 25.3 + 21x. What is your forecast for period 7? Part 2 A. 172.3…
A: Ans) y = 25.3 + 21x Forecast for period x=7 : x = 7 , y = 25.3+21*7 = 25.3+147 = 172.3
Q: Norfolk, Virginia, a major seaport on the East Coast, has a ship coal-loading facility. Currently,…
A: From the above given information, Arrival rate, λ =142 per day It takes 8 minutes per truck to serve…
Q: Find the dual of each of the following LPs Maximize z = 5x₁ + 12x₂ + 4x3 s. t: x₁ + 2x2 + x3 ≤ 10…
A: Primal MAX Z = 5x1 + 12x2 + 4x3 Subject x1 + 2x2 + x3 <= 10 2x1 - x2 + 3x3 = 8and…
Q: Given the uncertainty associated with the demand volume, and no other information to work with, what…
A: Mathematic models of decision-making help businesses take the correct decision for their operational…
Q: The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand…
A: In the Naive method last period’s actual sales are used as the forecast of this period. It is more…
Q: An operation specialist used two forecast methods to forecast demand for a certain word processing…
A: Forecast for A Month Sales(S) Forecast A(F) error(S-F) |error| January 60 February 25…
Q: Explain the following; i. change management ii. E-Business
A: Change Management = It is the method and manners which help the organisation to implement and…
Grand Garden is a hotel with 140 suites. Its regular suite price is $210 per night per suite. The hotel’s total cost per night is $150 per suite and consists of the following.
Variable cost | $ 110 |
---|---|
Fixed cost | 40 |
Total cost per night per suite | $ 150 |
The hotel manager receives an offer to hold the local Bikers’ Club meeting at the hotel in March, which is the hotel’s slow season with a low occupancy rate per night. The Bikers’ Club would reserve 120 suites for one night if the hotel accepts a price of $118 per night.
(a) What is the contribution margin from this special offer?
(b) Should the Bikers’ Club offer be accepted or rejected?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.
- A 100- room hotel has an ADR of $120 per room, variable cost of $15 per room and monthly fixed cost of $200,000. The average occupancy rate is equal to 70%. Assume 30 days in a month and 360 days in a year. Find the break-even occupancy %.. The Newcoat Painting Company has for some time been experiencing high demand for its automobile repainting service. Because it has had to turn away business, management is concerned that the limited space available to store cars awaiting painting has cost them in lost revenue. A small vacant lot next to the painting facility has recently been made available for rental on a long-term basis at a cost of $10 per day. Management believes that each lost customer costs $20 in profit. Current demand is estimated to be 21 cars per day with exponential interarrival times (including those turned away), and the facility can service at an exponential rate of 24 cars per day. Cars are processed on a FCFS basis. Waiting space is now limited to 9 cars but can be increased to 20 cars with the lease of the vacant lot.Newcoat wants to determine whether the vacant lot should be leased. Management also wants to know the expected daily lost profit due to turning away customers if the lot is leased. Only…Betty, the chief of nursing executive, need to make a decision about buying 340 new hospital beds for patient rooms. After she interviewed nurse managers at the units where the beds were going to be placed, Betty compiled her findings and decided to contact a well-known equipment company to obtain prices and a bid. No bids from other companies were obtained. The equipment company’s executive salesperson, Jim, discussed options at length with her and invited her and her significant other to an upcoming all-expense-paid, lavish junket at a five-star hotel in Hawaii to see demonstrations of the beds and experience a comprehensive sales program. Betty thought, “We badly need some relaxations and stress relief. Hawaii would be so much fun. Would it be wrong for us to go? If you were Betty, what would you do? Justify your answer with ethical framework: theory, approach or principle. Discuss the ethical principles at stake. What breaches are possible? Do you consider this situation a conflict…