Fixed cost

$85,000 • Due to the variable costs of $4.00 per unit, the selling price must be $6.00 o Competitors are selling similar products o at lower prices • Variable costs must decrease in order to sell products at a competitive price • Ryan believes that they cannot change their cost structure in the short-run • Maintenance and quality testing costs $.7 per unit o Costing $140,000 per 200,000 units • Sid believes that turning maintenance and quality control into fixed costs in the solution and…

The PVRP develops the classical Vehicle Routing Problem (VRP) to a planning horizon of several days. Each customer requires a certain number of visits within this time horizon while there is some flexibility on the exact days of the visits. The PVRP is a problem which occurs in companies that have to accomplish periodic repair and maintenance activities or that collect/deliver goods periodically. ¬Early formulations of the PVRP were developed by Beltrami and Bodin (1974) [13]. Christofides and…

Rich Manufacturing Case Study The cost-plus pricing strategy uses the expenses associated with producing a product and adding an additional amount, called a markup, to generate a profit. Rich Manufacturing’s production manager Gina Picaretto purchases 100,000 machine unit parts from Ghagat Incorporated each year. Ghagat uses cost-plus pricing in their contract with Rich Manufacturing. Ghagat’s costs per part include $10 for labor, $10 for other costs, and a markup of $5. The…

cupcakes, with a vanilla cake bottom topped with sugary vanilla frosting with sprinkles. In order to find our breakeven point in units, we need to divide our fixed costs by our unit contribution margin. Our fixed costs are $362 and our unit contribution margin is found by computing: unit selling price – unit variable costs. Our variable costs per unit is $1.24, ($0.91 consists of…

THE CASE On a rainy Thursday evening, as Mr. Pramod Kumar, the AGM-Industrial Relations-TATA Motors, was sipping his cup of tea, he had some unexpected visitors. A five-minute meeting with the visitors turned Mr. Kumar’s day on its head. Ramdas Soren, the local MLA of JMM (Jharkhand Mukti Morcha) in 2013 along with Santosh, the leader of the contract labour union in TATA Motors affiliated to JMM threatened to go on an indefinite strike if their demands remained unmet. Considering the seriousness…

and obtain the most updated standards costs and quantities. Step 2: Search for suppliers of inputs As indicated in part A, there is an unfavorable variable cost rate variance. This can be caused by paying more or used more overhead items than budgeted. The actual pricing of the current suppliers is higher than the standard set.…

Prices Yarn (Rs. / Kg) Rs. 160 Grey Fabric (Rs. / mtr) Rs. 62 Cost of Accessories (Rs/pcs) 34 Garments S.P. (Rs./pc) USD 5.25* * The average price of the garments is USD 5.25. The exchange rate considered is Rs. 63 / USD The total output and the raw material requirement under various process heads is summarised in the table under. Total Requirement Cotton yarn for GF GF for FF Garments for Retailing Kgs /month mtr/day Pcs/month Requirement and Demand 51,546 797,900 296,000 Note: All the…

contract can only be terminated in the case of a breach of a fundamental term in the contract. Analysis: Peig and Sarah’s acceptance of the Galway Bay Brewery’s offer of 60 kegs of beer per month until the Galway Bay Brewery can get their equipment fixed, means that Galway Bay Brewery are freed from the terms of the original…

These distribution centers are strategically placed to reduce shipping costs and each site supports 90-100 stores within a 150+ mile radius (Walmart, 2016). 4) At the heart of everything Walmart does logistically is a sophisticated point-of-sale system. Not only can Walmart tell what has been sold in the past, they can see…

the Actual Sales versus our Budget we found that our cost numbers were off. We had actually spent more than we had expected on our Variable Costs associated with volume and our Fixed Costs. Per our budget, our Variable Expenses should have been $13,890,000 and our Fixed Costs should have been $10,920,000. Our Actual Variable Expenses were $14,400,000 and our Actual Fixed Costs ended up being $11,190,000. We ended up being over budget on these costs by $780,000.00. Our largest discrepancies were…