A. restaurant is opening in Laie and is going to cater to the rich and the famous. It is a 35 seat                           A                                  B                                  C                                 D Cash Cost       3000                            3200                            2700                            2000 Estimate life    6                                  6                                  6                                  6 Trade in           500                              500                              600                              0 Installation       675                              675                              675                              675 Initial training   325                              350                              225                              275 Annual training  150                              125                             125                              100 Annual labor    3500                            4000                            3800                            4000 Annual maint   1200                            1500                            1100                            900   Which should you purchase based on this information. What if I gave you the following information? Machine A will produce 14,000 increase in annual sales with a 30% soda cost. Machine B will produce 16,000 increase in annual sales with 34% cost. Machine C will produce 18,000 in annual sales with 38% cost, and Machine D will produce 20,000 in annual revenue with 46% cost. Would your answer change?

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...
icon
Related questions
Question

  A. restaurant is opening in Laie and is going to cater to the rich and the famous. It is a 35 seat

                          A                                  B                                  C                                 D

Cash Cost       3000                            3200                            2700                            2000

Estimate life    6                                  6                                  6                                  6

Trade in           500                              500                              600                              0

Installation       675                              675                              675                              675

Initial training   325                              350                              225                              275

Annual training  150                              125                             125                              100

Annual labor    3500                            4000                            3800                            4000

Annual maint   1200                            1500                            1100                            900

 

Which should you purchase based on this information.

What if I gave you the following information? Machine A will produce 14,000 increase in annual sales with a 30% soda cost. Machine B will produce 16,000 increase in annual sales with 34% cost. Machine C will produce 18,000 in annual sales with 38% cost, and Machine D will produce 20,000 in annual revenue with 46% cost. Would your answer change?

Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.