Donegal Footwear is an intemational supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract calls for $12 million in annual fixed charges, which covers the provider's overhead and warehouse costs, and varlable costs of $16.00 per package shipped. Recently, Donegal Footwear found a warohouso it could lease at a cost of $18 million per year, which includes lease costs, labor, and management oversight. Furthermore, the company found another provider who would deliver packages from the warehouse for $10.00 per package. Considering only costs, how many packages must Donegal Footware ship to make the vertical integration into warehouse operations beneficial? Donegal Footwear must ship packages to make the vertical integration into warehouse operations beneficial. (Enter your response as an integer.) more than less than
Donegal Footwear is an intemational supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract calls for $12 million in annual fixed charges, which covers the provider's overhead and warehouse costs, and varlable costs of $16.00 per package shipped. Recently, Donegal Footwear found a warohouso it could lease at a cost of $18 million per year, which includes lease costs, labor, and management oversight. Furthermore, the company found another provider who would deliver packages from the warehouse for $10.00 per package. Considering only costs, how many packages must Donegal Footware ship to make the vertical integration into warehouse operations beneficial? Donegal Footwear must ship packages to make the vertical integration into warehouse operations beneficial. (Enter your response as an integer.) more than less than
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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
Transcribed Image Text:Donegal Footwear is an intemational supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse
services and handie packages destined for ground delivery. The contract calls for $12 million in annual fixed charges, which covers the provider's overhead and
warehouse costs, and variable costs of $16.00 per package shipped. Recently, Donegal Footwear found a warohouse it could lease at a cost of $18 million per year,
which includes lease costs, labor, and management oversight. Furthermore, the company found another provider who would deliver packages from the warehouse for
$10.00 per package. Considering only costs, how many packages must Donegal Footware ship to make the vertical integration into warehouse operations beneficial?
Donegal Footwear must ship
packages to make the vertical integration into warehouse operations beneficial. (Enter your response as an integer.)
more than
less than
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