A bank is considering two alternatives for handling its projected number of service calls in thenext decade (you should consider this as one period). If the bank sets up its own service callcenter in the U.S., the fixed cost is estimated to be $2,400,000.00, and the variable cost iscalculated to be 25 cents per call. If the call service is outsourced to a foreign company, thefixed cost would be $120,000.00, and the unit charge would be 45 cents per call.In the following calculations, monetary values should be in dollars and have 2 decimalplaces, and volumes of calls should be rounded up to whole numbers if necessary.(a)[2] What is the break-even number of service calls?

Unit call charge=$0.45 per callvariable cost= $0.25 per callFixed cost1=$2400000.00Fixed…

Answered: A bank is considering two alternatives…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Answer the given problem using the Customer Lifetime Value ( CLV) formula. Explain your answer The average sale for the boutique clothing retailer, Bellissi, is 50, and the average customer shops with them three times per year for two years. What is the lifetime value of this customer? After calculating the cost of goods sold ( COGS), overhead, marketing, and all other administrative expenses, Bellissi's profit margin is 20%.
Damen Ship Repair has just introduced a new service. For a fixed annual fee, Damen will predict what are the most likely repair parts you will need for each of your cargo ships over the next year. It will then preposition those parts either on your ships or at Damen’s shipyards depending on whether your crew can install that part or it must be done at a shipyard. Then all you pay for is the installation labor you actually use each year, which also comes at a discounted rate. a) Specify the key features and benefits that they would want to inform customers about b) Develop an integrated marketing communication plan for marketing the service
Imagine that you are the chief operations officer (COO) of Amazon.com. You are interested in creating a competitive advantage for your company (compared to other online retailers) in that you wish to be able to provide to your customers faster shipping than you have been able to provide with your existing set of warehouses and fulfillment centers. It has been decided that using overnight shipping on every order (which would, of course, be about as quick as shipping could be) has been eliminated as a possibility due to being prohibitively expensive. Describe what you would recommend as the COO to improve the speed with which Amazon.com customers receive the products that they have ordered. What negative consequences or disadvantages, if any, do you see as a result of your proposed solution?
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Use the table provided below showing rooms available, rooms sold and rooms revenue for 7 properties (subject hotel + comp set) for one month to compute occupancy index for the subject hotel. Rooms Available (Supply) Rooms Sold (Demand) Revenue The subject hotel 10'000 7'000 700'000 Hotel A 9'000 3'000 400'000 Hotel B 9'000 8'000 700'000 Hotel C 10'000 7'000 700'000 Hotel D 000י7 5'000 500'000 Hotel E 11'000 8'000 700'000 Hotel F 8'000 4'000 400'000
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5) Your t-shirt company currently uses a manual printing system to put designs on blank shirts (all equipment is paid for). The cost of goods sold is $8 and the retail price for the shirts is $25. You currently print 11,000 shirts/year with this equipment and that is the maximum capacity. You are considering investing in new equipment. You came across a semi-automated printing system for $30,000, plus you'll need to spend $5,000 for the electrician to update wiring and connect the equipment. To break even in one year, how many (total) shirts would you need to print next year?
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Suppose that you own a freight forwarder company. One of your customers “ELAR A.Ş.” called you on JANUARY 2022 and asked for the freight offer for the transportation of five TEU (your cost object) products from location X to location Y.You are supposed to give a reasonable freight offer to your customer. Your profit margin is 25 %. First find the cost, then add 25 % profit margin to find the customer price. Use job costing and normal costing.a) Choose Location X and Y, explain your route and transportation modes. Explain whether the transportation is door to door or not. You can use one, two or three modes of transportation to carry out this transaction.b) Identify and LIST the direct costs of the job. Calculate the total direct costs of the job.c) Budget and LIST the indirect costs of your company for all jobs in 2022. Calculate the total indirect costs of your company for 2022. d) Select your allocation base and compute the allocation rate per unit. You may use multiple allocation…
Pane 3. Assume a company receives cash from different geographic areas of $500,000 daily. The average float of the cash receipt is 4 days. Interest rate on savings is 6% per year. If the company institutes a lock-box system, it will reduce the float to two days. It will cost $80,000 to install the lock-box system and an additional monthly fee of $1,000 to operate it. Should the company install the lock-box system?

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